Walid Salah El Din
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- Most of EU Major equities indexes could get over Paris terror attacks closing the green territory, while CAC 40 which was attracting the markets eyes was having vacillating performance in the beginning day of the week, before closing it 3 points down.
- The performance of US major stocks indexes were pretty obvious taking a way up supported the risk appetite by the closing of the EU session.
- After opening barely in the red territory following the Paris terror attacks, S&P 500 has spent its first session of the week creeping up supported by energy prices rebound in the beginning of the new week to engulf last Friday falling by a long white day giving reversing sign.
- While Oct EU CPI came to show rising by 0.1% y/y, after the preliminary release has shown previously no yearly change following falling in September by 0.1%, while the ECB inflation target is 2% yearly or what's close but below it.
- The current low inflation level which is far from this rate drove Draghi to repeat several times since the recent ECB governing council meeting on last Oct. 22 that there will be reassessment of the QE impact next December raising the odds of taking new easing decision.
- It should be mentioned here that the energy prices played a key role in directing the inflation in EU even by a transitory way helping the ECB to prompt its QE plan in the first quarter of this year, before watching later sluggish inflation rebounding to the positive territory.
- From another side, EU GDP data came by the end of last week to show lower than expected seasonally adjusted growth in the third quarter by 0.3% undermined by lower than expected growth in Italy which has grown quarterly by only 0.2% with no GDP quarterly change in Portugal which is facing currently unstable political situation because of the austerities measurements.
- The ECB's QE started to be enact on last Mar. 9 buying €60b monthly of EU governmental bonds till September 2016 with no change until now.
- EURUSD which opened the week on a downside gap at 1.0740 could not hold further above 1.07 but it found support again at last Tuesday low at 1.0673 to stave off its falling during US session, after rising of the downside momentum in the beginning of the new week.
- EURUSD way down below 1.0673 can be faced by supported level at 1.0659 which has been its formed bottom on last Apr. 21, before1.0520 which could prop the pair up on last Apr. 13 to form higher low above 1.0462 which capped the pair falling on last Mar. 13.
- While the way up is in need now for filling the downside gap opening of the week by getting over 1.0773, after it failed to do that yesterday to be satisfied by forming lower peak at 1.0756 to fall from it again.
- While rising up further can face higher resistance at 1.0829 which capped its rebound last Thursday.
Not Walid Salah El Din nor FX recommends accepts any liability for any loss or damage what's ever that may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in these trading recommendations.
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