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Positive risk sentiment takes over – Market Overview

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Miguel A. Rodriguez
Miguel A. Rodriguez
05 novembre 2022
Market risk sentiment is gradually improving as economic figures are released, and expectations regarding the administration rate of vaccines are more optimistic.

Yesterday's speech by Federal Reserve Chairman Powell also contributed to this improvement after the Fed head dismissed any concerns about inflationary spikes and remained determined to maintain the current monetary stimulus for as long as necessary.

Even so, given the evolution of economic growth data, long-term interest rates remain at their maximum levels, and interest rate futures already forecast a hike by the end of next year.

Another positive factor for the market is Biden’s fiscal stimulus package, which will be voted today in the House of Representatives before going to the Senate for final approval. But after the rounds of talks carried out by Biden's team, it is more than likely that this stimulus package will be implemented in a very short timeframe.

Finally, another element that has influenced the markets’ overall moods has been the data of Germany’s GDP published today. For the fourth quarter, the reports have exceeded expectations with a rise of 0.3% vs 0.1% expected. This data removes the possibility of a recession in Germany (two consecutive quarters with negative GDP). Despite the strict confinement measures imposed in Germany during this period, it encourages a more robust recovery than expected.

In this scenario, the stock markets have slowed the downward movement of the last week and even if only timidly, they rebounded and return to the green numbers today.

Germany’s DAX

In the case of DAX, the index started to gain territory after the GDP numbers came out, getting close to the resistance level located around 14,000, a level that needs to be exceeded to end the downward trend that began a week ago a technical analysis perspective.

The EUR/CHF pair.

On the forex market, there has been a significant movement in the Swiss franc.

The Swiss currency, like the yen, is perceived as a safe haven that strengthens during periods of economic or geopolitical uncertainty.

EUR/CHF experienced a downward movement for three years without the central bank being capable of preventing it with interventions and aggressive interest rates cuts.

The upward movement that started yesterday has pushed the pair to a significant resistance zone around 1.1000. Technically, and taking into account the weekly chart, exceeding this area would open the way to higher levels located around 1.14000 and end the downtrend of recent years.

Sources: WSJ, Bloomberg.

Le informazioni contenute nel presente documento sono redatte da CAPEX.com/it e non costituiscono né devono essere interpretate come suggerimenti di investimento. Le informazioni di cui al presente documento costituiscono comunicazioni di marketing generali a scopo informativo e, in quanto tali, non sono state preparate nel rispetto dei requisiti di legge che promuovono le ricerche di investimento indipendenti. Inoltre, non sono soggette ad alcuna limitazione sulle transazioni condotte in anticipo rispetto alla divulgazione delle ricerche di investimento in questione.Gli utenti / lettori non dovrebbero fare affidamento esclusivamente sulle informazioni qui presentate e dovrebbero fare le proprie ricerche / analisi anche leggendo la ricerca reale sottostante.  Il contenuto è generico e non tiene conto di circostanze personali individuali, esperienza di investimento o situazione finanziaria attuale.Pertanto, Key Way Investments Ltd non accetta alcuna responsabilità per eventuali perdite di trader a causa dell'uso e del contenuto delle informazioni presentate nel presente documento. Le prestazioni passate e le previsioni non sono un indicatore affidabile dei risultati futuri.

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel ha lavorato per importanti istituzioni finanziarie, come Banco Santander e Banco Central-Hispano. È autore di libri sul trading di valuta con diverse pubblicazioni alle spalle.

I CFD sono strumenti complessi e presentano un rischio elevato di perdere denaro rapidamente a causa della leva finanziaria. Il 69.69% dei conti degli investitori retail perde denaro quando fa trading su CFD con questo fornitore. Considera se comprendi il funzionamento dei CFD e se puoi permetterti di correre il rischio elevato di perdere i tuoi soldi.