ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 11, 2019. See details below:
FOREX
The Euro is losing ground to the Dollar, as the European Wednesday session gets under way. After holding steady at the beginning of the week, as investors sat tight awaiting the ECB meeting which starts on Thursday, Euro risk is now clearly to the downside. The markets appear to have embraced the unavoidability of fresh stimulus measures by the European Central Bank and have started to price them in, driving the value of the single currency down.
Ricardo Evangelista – Senior Analyst, ActivTrades
EUROPEAN SHARES
European stocks are extending yesterday’s gains, following the trend set overnight in Asia as “risk-on” mood prevails. These bullish moves follow China’s release of a tariff exemption list for US products (food and lubricants), taking effect from September 17. Beijing is also considering to extend this list to additional products imported from the US on the near-term basis. Also boosting sentiment was a tweet by the China Global Time’s editor saying that Beijing will soon implement a new set of measures aiming to ease the negative effects of the trade war, which will benefit both Chinese and US companies.
Markets traded mostly higher everywhere, from Tokyo to London, as investors welcomed the news of a potential de-escalation of the trade dispute. Elsewhere, traders will keep an eye on US Producer Prices for August due later today as well as on tomorrow’s US CPI, ahead of the ECB meeting.
The best EU performer so far is the DAX-30 index, up almost 1% and moving towards 12,370.0pts. The Frankfurt market is currently registering its 6th day of gain in a row and is approaching the strong psychological and technical resistance of 12,400.0pts, where a correction may occur.
DAX-30 index
Pierre Veyret– Technical analyst, ActivTrades
GOLD
The short-term outlook for gold appears mixed, with prices suffering from the risk-on mood now prevailing in financial markets, which pushed investors to bet on riskier asset. Traders are now waiting for Mario Draghi’s speech, to understand if he will be able to fulfil the expectations that he raised of even lower interest rates and more economic stimulus, which could be in the form of assets purchase. Since expectations for the meeting of tomorrow are quite high, the risk of a disappointment is high too, if Draghi does not manage to get approval from his team to go ahead with this measure in his final ECB meeting.
The decline of gold seen in the last few days is also reflecting these expectations. In any case, the correction remains moderate, even if prices reached a new 1-month low. Gold is still within the values hit on August 13 (low 1,477, high 1,533). A break up or down of these levels could offer a new directional impulse, even if the main trend still appears positive.
Carlo Alberto De Casa – Chief analyst, ActivTrades