Volatility continues to increase in stock markets as the week draws to an end, especially in Europe, where most benchmarks opened mixed but with strong price actions. Rising virus infections are weighing on market sentiment, principally after France and the UK registered new record numbers. Investor hopes are now that new governmental stimulus packages can offset the negative economic prospective brought by the second wave. This situation is especially true in the US where many investors, desperately waiting for further support from the government, are increasingly concerned a phase 4 stimulus may not happen before 2021, which would be likely to put a strong pressure on stock markets and the rest of the economy for the end of the year.
Technically speaking, most European markets are now trading close to major support levels that have been preventing prices from drifting lower since June. While a rebound over these zones remains the most likely scenario on the short-term basis, a break-out of this level would unlock a dangerous downside risk by triggering a new mid-term bullish trend following the summer consolidation.
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.