ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 13, 2019. See details below:
FOREX
The Euro continues to rise and is currently at $1.11, having recovered from 2-year lows in the immediate aftermath of yesterday’s ECB announcement, when it traded at $1.09. Despite the announcement of a rate cut, the start of a new asset purchase program and fresh bank incentives, the markets appear, for now, unwilling to walk away from the single currency. The European Central Bank sent out a clear message, that no effort will be spared to create more accommodating conditions for growth and to closer to the target inflation; this appears to have inspired confidence in investors, that better days lie ahead for the continent’s economy. At the same time, positive signs coming from both Washington and Beijing have lightened up market sentiment, leading to greater risk appetite, which is beneficial for the Euro.
Ricardo Evangelista – Senior Analyst, ActivTrades
EUROPEAN SHARES
European markets opened higher for the last trading session of the week as market sentiment is on the rise following yesterday’s ECB announcement as well as the latest positive developments surrounding the U.S.-China trade dispute. Mario Draghi responded to many investors’ hopes yesterday by cutting rate and delivering a new open-ended bond buying program (20Bln EUR per month) which sends the clear message that the ECB will do whatever it takes to protect the euro zone economy from any slowdown and to bring the inflation rate back towards the 2% target. In the meantime, traders’ appetite for riskier asset has also been boosted by President Trump’s declaration that he would consider an “interim deal” with China, even if he would prefer to get the full agreement. Lower trade tensions combined with dovish central banks are now the main bullish drivers on the market and are helping to significantly lift stock prices. Next on the investors’ agenda is the next FED meeting next week. Jerome Powell is widely expected to also proceed with another rate cut, which is likely to extend the current rally on stocks.
The DAX-30 index has recently cleared the 12,435.0pts resistance as prices are now heading to their main resistance at 12,472.5pts reached during yesterday’s spike. A clearing of this zone could extend the rally until 12,580.0pts on the near term.
DAX-30 index
Pierre Veyret– Technical analyst, ActivTrades
GOLD
Gold is moving on the emotional reaction that followed the ECB conference and the announcement of a new QE by Mario Draghi. His bazooka pushed bullion up to $1,524, but the rally did not last too long: while the euro was recovering, gold price started to lose some ground, with an unusual correlation: gold fell while the euro was appreciating against the dollar. In just couple of hours however, gold was once again ready for another test to level $1,500. We are still in the lateral trading range of $1,477 – 1,433, marked by the lowest and the highest of the August 13 chart.
Gold chart
Carlo Alberto De Casa – Chief analyst, ActivTrades