European Equities: German Business Confidence and Geopolitics in Focus
The European majors ended the week on the back foot. The DAX30 and CAC40 both fell by 0.13%, while the EuroStoxx600 fell by 0.36%.
It was a bullish week, however. The CAC40 led the way, rallying by 2.99% with the DAX30 ending the week up by 2.01%. The EuroStoxx600 trailed with a 1.57% gain.
News of a planned meeting between Trump and Xi at the coming week’s G20 Summit provided support through the week.
Adding to the upside was a dovish FED and some ECB President jawboning mid-week. 7 FOMC members projected 2 rate cuts for the year. ECB President Draghi also assured the markets of ECB support should inflationary pressures fail to build.
The Day Ahead
It’s a relatively quiet day ahead on the economic calendar. There are no material stats due out of the U.S, leaving the markets to focus on German business sentiment figures.
If the prelim Composite PMI is anything to go by, the IFO Business Climate Index could surprise this morning
Trading Central – EURUSD : sentiment is a Buy to 1.1570 if above 1.1355.
Price of Gold Fundamental Weekly Forecast – Strength of Rally Could Hinge on Powell’s Speech
Gold traders are going to continue to take their cues from the direction of Treasury yields and the U.S. Dollar. The best chance for another spike to the upside will be on Tuesday when Federal Reserve Chairman Jerome Powell speaks. Gold prices could rise sharply if he continues to suggest a rate cut is coming. If he is less-dovish than he seemed in his post-meeting press conference last Wednesday then traders may decide to take profits in gold.
Trading Central – GOLD : sentiment is a Buy to 1415.00 if above 1397.00.
Risk Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.28% of retail investor accounts lose money when trading CFDs with this provider. The information contained in this market review should not be construed in any way, as containing investment advice and/or a suggestion and/or solicitation for any trading activity and financial transaction. The data contained in this market review is not necessarily real-time nor accurate. The data and prices on the material are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. There is no guarantee and/or prediction of future performance. EuropeFX, its affiliates, agents, directors or employees do not guarantee the accuracy and validity of any information or data made available and assume no liability as to any loss arising from any investment based on the same. Trading Forex/CFD’s carries a high level of risk and can result in the loss of your whole investment. Forex/CFD’s are leveraged products and therefore Forex/CFD’s trading may not be appropriate for all investors. It is recommended that you do not invest more money than you can afford to lose to avoid significant financial problems in the case of losses. Please make sure you define the maximum risk acceptable for yourself.