European shares registered moderate gains at the beginning of this new year amid increased risk appetite from investors. Vaccine deployments, central bank aid as well as stimulus measures from governments keep on sustaining market sentiment and are likely to remain as major market drivers for Q1. However, bullish performances have also been registered on more “defensive” values like precious metals illustrating that bullish investors are diversifying their portfolio and spreading their risk across different asset classes. This hedging strategy may be a sign of lingering uncertainties about the still fragile economic recovery being threatened by the new strain of the virus. This could lead to a bumpy Q1 if any problems with the vaccines emerge in the coming weeks.
In the meantime, traders brace for a busy first week of 2021 with today’s focus on the highly anticipated OPEC+ meeting during which energy ministers will decide on oil production. Investors will also be keeping an eye on the FOMC minutes on Wednesday as well as the US unemployment figures for December on Friday.
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.