European shares drifted lower on Wednesday as the market volatility remain low. Despite good French industrial output data early in the morning (2.1% vs Exp. 0.2%), investors remain steady prior to the semi-annual testimony from Jerome Powell before Congress. This intervention from the Fed chairman is likely to bring a bit of a storm on financial markets as many investors are unsure on the next monetary policy given the US economy is still sound and may not need any further stimulus. Powell will have to carefully choose his words and the tone he will use as investors will be trying to assess whether the Fed will continue its easing policy or not.
Meantime, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin confirmed they are having resumed talks with their Chinese counterparts, which could also bring a bit of volatility on stocks as the trade war remains one of the biggest concerns of the Fed.
Photo by Zifeng Zhang.
In Europe, the FTSE-100 is one of the only indexes to register a slightly positive performance after the UK Parliament backed a measure making it harder to force a no-deal Brexit. Tory members continue to vote for the next PM and Boris Johnson remains the front runner after yesterday’s TV debate. The market is trading around 7,475 pts after having registered a sharp rebound over 7,455 pts. European stock traders will also pay attention to the Portuguese and Irish CPI prior to Powell’s testimony.
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.