Our expectations for the EU session, risk on and the direction of money flows

We expect European markets to launch on a positive note after the US session recorded new records and the Asian ended in positive territory. Market players are now concentrating on reports and economic data, which for now is more than good and stable. Phase II Deal negotiations are also expected to start.

Cash flows in Europe are “eager” to flow into risky assets, with the European premarket indicating a higher opening to major European markets. The yen and the Swiss franc are giving way today, gold and oil holding positions. The pound remains stable, and today we expect retail data in the UK.

There were reports that there were 11 wounded US troops in the attacks on US bases in Iraq, but for now this news remains in the background and is not considered a risk factor, as is the Trump impeachment procedure.

With reports that Europe is already pushing back from the bottom up from a macroeconomic point of view, we believe that European indices will be in perfect correlation with the US, which, apart from the season of reports and macro data, is supported by the real opportunity of new tax breaks this year. Of course, this will also be the main front of the current presidential campaign, Trump, for the upcoming elections – this fall.

It seems that we have a lull on all fronts, which gives room for risky assets to unfold. Today we expect a risk on session for both Europe and the US.

 Trader Martin Nikolov

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance