European equities edged higher on Friday, extending the significant advance registered yesterday amid rising investor appetite for riskier assets. Market sentiment has been given a fresh boost by a reportedly “constructive” phone call between the US and China yesterday and investors were relieved to hear the two blocs were moving on with the trade negotiations, especially after this week’s rising belligerence between Washington and Beijing.
Though the damage caused by the Covid-19 crisis is unprecedented, so was the stimulus response from nations and central banks around the world. This has prompted investors to start betting on a recovery more recently. Expectations that the FED could even go into a negative interest rates environment boosted sentiment yesterday and made the US Dollar sink. Although many US officials have said they do not see negative rates as appropriate in the US the market seems to be already starting to price that in, ahead of today’s anticipated US job report. This is seen a dangerous move though as the market could suddenly move south if investors were disappointed by the FED.
Photo by Adam Niescioruk.
The DAX-30 index is currently the best performer in the euro zone, with higher volatility expected today. The market is trading significantly above its first major support at 10,770.0pts but remains capped by the 11,120.0pts/10,980.0pts resistance zone. The DMI indicator shows a bullish pressure but with lack of directionality, which makes the end of the trading week more uncertain.
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.