GOLD
Gold is still trading inside its mid-term bullish channel, above the support at $1,808 as well as the 89 period Exponential Moving Average (EMA) despite an increase in risk appetite. It is not so usual to see “risk-off” assets edge higher even as stocks and other riskier assets trade near record levels as the drop in the US Dollar is supporting gold, precious metal and commodity markets as a whole. However, the boost for gold is likely driven in part by hedging as traders cover some of their exposure to stock markets. Technically, gold is still trading sideways, flirting with the support at $1,808 support and resistance at $1,815 with no signs of any bearish break-out to come.
Pierre Veyret– Technical analyst, ActivTrades
EUROPEAN SHARES
Stock investors pushed EU equities higher on Wednesday, extending gains registered during the Asian session, amid renewed confidence in riskier assets brought by solid corporate results. Investors’ risk appetite is on the rise as many welcomed the tempered tone from Beijing towards tech shares, and the huge gaming industry in particular, which has contributed in lifting some of this week’s market uncertainty. Meanwhile, most companies continue to publish earning reports topping estimates which is also seen as a good sign of a robust recovery by investors around the world. With positive corporate results better than expected in an environment still supported by central banks, the trading stance remains bullish on most benchmarks. However, traders will cautiously assess today’s US ADP nonfarm employment figures and the speech by Richard Clarida, Vice Chair of the Federal Reserve, ahead of Friday’s NFP, to seek more clarity about the Fed’s next policy move.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
