ActivTrades’ Market Analysts have prepared for Leaprate their daily commentary on traditional markets for June 17, 2019. See details below:
FOREX
The US Dollar remains buoyant after gaining more than 0.5% against the Euro during Friday’s session. As the countdown to June’s Fed meeting is under way, the US Dollar index continues to record gains and is comfortably above the 97 level. This can be interpreted as a sign that despite expecting a more dovish tone from the Fed at this meeting, investors are also focusing on how other central banks will react to the escalation in trade tensions, knowing that many will be very likely to start easing soon, too.
Ricardo Evangelista – Senior Analyst, ActivTrades
EUROPEAN SHARES
European markets had mixed open today, continuing the consolidation phase started last week, as investors try to gauge the market sentiment 10 days ahead of the G-20 meeting in Osaka. Traders are bracing for this week’s FOMC meeting (18th-19th of June) and the market expects a more dovish turn with a possible, but not likely, rate cut.
No significant price action is expected for the beginning of the week but some interesting moves are already happening on EU stocks, especially on airlines that are getting hit hard by rising oil prices : EasyJet -3.4%, Ryanair -3.3%, Air France -4.4% and -10.0% for Lufthansa. The Stoxx-50 index is trading higher after having confirmed the 3,380.0pts price level as a short-term support for the market. New targets are set towards 3,390.0pts/3,400.0pts then 3,415.0pts.
Pierre Veyret– Technical analyst, ActivTrades
GOLD
The gold fever is spreading but in the last few hours speculators hit bullish bets, pulling down the price from the fresh 12-month top seen of Friday to $1,330/1,335. In any case, the jump seen in the final part of last week, could represent an important test to the key resistance level of $1,350-1,370, an area which has always stopped the recovery of bullion in the last 4 years, starting from summer 2016, just after the Brexit vote, when the yellow metal stopped its rally in this area (slightly above, at $1,374).
Moreover, there are many automatic orders in this area and many short sellers are likely to close their bearish betting if gold rises above $1,370. Investors are now focusing on the FOMC meeting of this week. They will be paying attention to any hints to potential rate cuts in the next few months.
Carlo Alberto De Casa – Chief Analyst, ActivTrades