ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for August 16, 2019. See details below:
FOREX
Following 3 consecutive days of losses, the Euro is once again down during early Friday trading, by about 0.16% against the US Dollar. The single currency broke the $1.11 level and the risk is still to the downside, following declarations yesterday by Olli Rehn, one of the leading figures in the European Central Bank governing council. Mr Rehn indicated that the ECB will more than likely adopt new stimulus measures, when it meets in September, also stating that it is preferable to do too much than not enough. With Germany threatening a recession and a political storm brewing in Italy, the ECB is pledging to act as necessary to keep the Eurozone economy on the right track and this may mean more losses for the Euro.
Ricardo Evangelista – Senior Analyst, ActivTrades
EUROPEAN SHARES
Stocks in Europe edged higher shortly after the market open, after little gains were registered almost everywhere Asia overnight, at the end of a week characterised by high uncertainty and low volatility. Poor data and difficult discussions on trade between Washington and Beijing are obscuring the visibility on markets. The most recent events haven’t helped, as President Trump said that any deal with China “must be on U.S. terms”. According to Beijing, the last round of U.S. tariffs was a violation, previously reached between the two blocs.
Ahead of J.Powell’s intervention at the annual Jackson Hole meeting, traders now bet on more central bank loosening aimed at sustaining the economy and prevent a global recession.
At the moment stock markets are edging higher everywhere in Europe, with the Stoxx-50 index trading well above 3,290.0pts while the DAX-30 got back above the 11,500.0pts zone. However, the German index will face a strong technical resistance level at 11,540.0pts where a clearing could lead to higher tops, towards 11,615.0pts and 11,700.0pts by extension.
Pierre Veyret– Technical analyst, ActivTrades