European markets opened lower on Thursday, extending the losses recorded in the previous session, following Jerome Powell’s speech. Yesterday’s decline on stocks took place after investors were strongly disappointed by the tone of the Chairman of the Federal Reserve during the press conference, as the central banker gave mixed signals regarding the next policy moves. The FOMC delivered its expected 25 basis point rate cut but Powell’s speech was surprising hawkish as he left all options open for the Fed: from further rate cuts to another rate hike cycle. In theory, a hawkish central banker should reassure investors about the strength of the economy, however, lingering problems related to the current US-China trade war are a concern for many.
With the FED out of the way, traders will now focus on tomorrow’s U.S. job report and in Europe, investors will pay attention to the BoE’s policy decision due today as everybody wonders how Mark Carney is going to react to the pressure on the Pound due to rising economic and political uncertainty. The FTSE-100 stopped its decline after having found a strong technical support over 7,475.0pts but volatility spikes may take place this afternoon during Carney’s speech.
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.