India – EU deal with positive signs

Frank Walbaum FX Strategies.Asia

Important news for the day

India – EU deal

The newly achieved trade deal between India and the European Union might further support both economies. With about 2 billion people this marks a milestone, which took about twenty years of negotiations. The free trade agreement might not please the United States, which keeps added barriers in global trade. Geopolitical tensions might fade slightly following the move. The size of both economies consists of about ¼ of global gross domestic product.

Market talk

The weakness of the Dollar continues to support stock markets. The S&P 500 went higher and also the Nasdaq is tackling the high from November with a potential to break to the upside. Yet, since cash reserves of professional investors are being depleted the risks of a market correction might be on the cards. Furthermore, the rise in oil prices might also indicate that the demand is still growing. Gold and Silver both printed a bearish pinbar candlestick pattern, which could signal that a correction might be on the cards. The German DAX continues to also remain positive, with the potential to rise as well.

Tendencies in the markets

Equities positive, USD weaker, crypto weaker, oil sideways, Silver sideways, Gold strong.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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