Daily market commentary: The Pound continues on a slow decline

Daily Market analysis

ActivTrades’ Market Analysts have prepared for Leaprate their daily commentary on traditional markets for May 14, 2019. See details below:


The Pound continues on a slow decline, testing the $1.29 support level. Sterling is exposed to the fall-out from the escalation in trade tensions, which is behind a change in the market sentiment to a more risk-off stance. But, there is also the small matter of Brexit. Nigel Farage and his Brexit party are leading the UK’s intention of vote for the upcoming European Parliament election. At the same time, talks between the government and the main opposition party don’t seem to be going anywhere, reviving ‘no-deal Brexit’ as a real possibility, which is not good news for Sterling.

Ricardo Evangelista – Senior Analyst, ActivTrades

European shares

Colours have changed for this second trading day of the week on European stock markets as every benchmark is in the green despite a negative session in Asia where shares dropped from Tokyo to Beijing. The current rebound seems to be mostly technical after stocks hit significant support levels and safer assets like gold reached important resistances points after yesterday’s break-out.

However, despite the strong technical landscape, stock markets are also weighed by macro news with rising geopolitical tensions with North-Korea after Pyongyang declared the U.S. were in direct violation of June 12 summit agreement. In China, the government is said to be possibly releasing additional retaliatory trade measures against the U.S. despite having declined to comment on U.S. Treasury holdings yet (China currently holds USD 1.2tln in USTs). The Stoxx-50 index struggle to clear the 3,300.0pts zone while the DAX-30 in Frankfurt has failed to clear the 11,950.0pts level and now is back towards the 11,900.0pts price level.

Pierre Veyret– Technical analyst, ActivTrades

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