European markets had a mixed opening on Friday following an Asian trading session lacking a clear direction while US gauges point to modest declines at the opening. This uncertain market sentiment has several sources. First, investors are digesting poor German Industrial Production data for December which came in below expectations. In addition, rising concerns about the coronavirus hit investors’ sentiment after Japan has found 41 additional cases on the Yokohama cruise ship. And finally, some traders may be tempted to take some of yesterday’s profits prior to today’s US job report where a significant increase is already priced in. Despite these bearish factors, the risk-on mood remains robust this week as investors have become more and more optimistic about the impact of coronavirus on Chinese growth and sales.
However, a real downside risk to the market will be looming if the infection continues to spread past mid-February and further in Q2. For now, the Stoxx-600 Index is being led down mostly by miners and carmakers, while the DAX-30 in Frankfurt is the worst performer. The market consolidated close to its historical high slightly below the strong 13,600pts level. The first support is located over 13,515pts while the second one is close to the 21-period Exponential Moving Average, which is currently near the 23.6% Fibonacci retracement above 13,430pts.
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.