ActivTrades’ Market Analysts have prepared for Leaprate their daily commentary on traditional markets for June 24, 2019. See details below:
The US Dollar continues to devalue as the prospects of an interest rates cut by the Fed, as early as in July, sink in. Currently trading at a 3-month low against the Euro, just below $1.14, there may be further downside risk for the Greenback as markets continues to discount the expected reduction in monetary policy divergence, between the two central banks. The European Central Bank doesn’t have much margin of manoeuvre, with its interest rates already at historical lows, while the Fed started tightening in 2015 and could potentially cut 8 times before reaching the current ECB levels.
Ricardo Evangelista – Senior Analyst, ActivTrades
Gold is holding at $1,400 and this is a positive signal of consolidation after last week’s rally. Investor interest in bullion is still high and the weakening of the greenback represents another positive element for gold, after the dovish Fomc statement of last week.
The gold rally pushed silver up to, but the scenario in this case is less strong, as prices keep bouncing on the resistance area at $15,5.
Carlo Alberto De Casa – Chief Analyst, ActivTrades
Shares are rising in Europe this morning, following a bullish Asian trading session and confirming last week’s rally on stocks. The recent sentiment has also been boosted by VP Mike Pence’s last words about “positive signs of progress in the talks with China” ahead of the highly anticioated next G-20 meeting in Osaka later in the week. However, the risk-on mood might be short lived; investors may be tempted to take some profit after last week’s gains and reduce their exposures as volatility will likely be on the rise prior to the G-20 on Friday.
Furthermore, investors may want to adopt a more prudential approach in their trading as geopolitical tensions between the U.S. and Iran remain high after President Trump said he will unveil new major sanctions against Tehran on Monday. With no strong technical signs of a trend reversal on stocks so far, a corrective would be expected at this point as markets needs to confirm their new support price level before registering new highs. The worst performance today is being registered by the German DAX-30 index in Frankfurt as prices trade towards 12,280.0pts. However, the bullish trend will remain valid as long as the market doesn’t break the 12,250.0pts zone.
Pierre Veyret– Technical analyst, ActivTrades