ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for August 19, 2019. See details below:
FOREX
The Pound is on the backfoot, having lost more than 0.1% to the US Dollar during early Monday trading. Brexit and related matters continue to be the main driving force behind Sterling; after a slight recovery at the end of last week, following report pointing at a cross party effort to stop Prime Minister Boris Johnson and his plans for a Brexit at any cost, the Pound is once again losing ground. The losses result from difficulties in establishing a common ground for all the forces opposing Johnson’s plans. Many in the conservative and liberal democrat fields are refusing to support a potential government of national unity, led by Jeremy Corbyn, thus making it harder to stop a no-deal Brexit, come October 31st.
Ricardo Evangelista – Senior Analyst, ActivTrades
EUROPEAN SHARES
Shares rose in Europe on Monday, extending last Friday’s performance and following strong gains registered overnight in Asia while Treasury yield keep recovering from their annual low. Market sentiment has been sustained by President Trump’s latest words on trade. He said “positive talks” had been conducted with Beijing, according to Larry Kudlow. However, uncertainty remains as Washington officials also said the US are not ready to sign a deal with China yet.
Markets are likely to stay volatile as traders brace for a busy week full of economic data like the release of minutes from the FED’s meeting on Wednesday and Euro-zone PMI data due on Thursday. All eyes will be on central banks as the traditional Jackson Hole meeting kicks off on Friday. Many expect to see the FED’s Chairman, Jerôme Powell, reassuring everyone by providing a clear view on the state and health of the economy.
For now, all European benchmarks are edging higher, with the DAX-30 index registering the best performance so far: prices cleared the 11,600.0pts level shortly after the opening bell this morning and are now heading 100-points higher, to the significant 11,700.0pts zone. A clearing of this price level could extend the current rally to 11,735.0pts and 11,785.0pts by extension.
Pierre Veyret– Technical analyst, ActivTrades