The first trading session of August opened with a mixed trading stance for European contracts, mirroring the trend seen overnight on Asian markets. Increasing coronavirus cases in the US, Latin American and BRIC countries mixed with growing fears of a second wave in Europe continue to be worrisome for investors as it could seriously stall the economic recovery. In addition, President Trump’s recent threat to Chinese-owned software companies in the US further escalated tensions with Beijing, which inevitably weigh on market sentiment today.
Technically speaking, the current lateral market consolidation on stocks is not yet threatening the mid-term bullish trend yet as prices have not broken any significant support zone, despite the correction. The upside risk remains alive, but investors will need further fiscal and monetary support from lawmakers and central banks in order to sustain risk appetite in the near term. Having said that, most market operators are likely to be particularly attentive to today’s speeches from Presidents of the Federal Reserves of St. Louis, Chicago, and Richmond, to get more clues on the Fed’s next move.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.