European shares are extending yesterday’s losses, following a mixed trading session in Asia where tensions between Japan and South Korea scared stock investors. In Europe, and even globally, investors’ sentiment is still being slashed by last week’s better than expected US job report. Most traders who were anticipating a more dovish Fed due to a global slowdown caused by President Trump’s trade war with China have shifted their trading stance. Investors are seeking to diversify risk across other asset classes like US Dollars or even cryptocurrencies, rather than traditional safe heavens like Gold or Swiss Francs, which means the Risk-on sentiment is still alive.
However, volatility is likely to be low today as most investors are waiting for the key testimony from Jerome Powell to the US Congress tomorrow, in order to get some clue to the Fed’s monetary policy. The DAX-30 index is the most shorted European index today as the market came back to a major support located towards 12,420pts. The Stoxx-50 index is also bearish this morning, trading below 3,500pts, with 3,480 pts as the first major support zone. In the UK, GBP markets remain calm before tonight’s TV debate between the candidates in the race to be the next Prime Minister. The FTSE-100 trades toward 7,475pts in a corrective move started at the end of last week but seems to have found support over the 7,465pts zone in low volumes.
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.