DAX Jumps To Almost 13300 on Covid-19 Vaccine Hopes

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Dear traders,

Stocks surged amid Covid-19 vaccine developments that fueled optimism that the world will soon have a potential way out of the pandemic. However, questions about safety and efficacy of the shot remain while it is still too early.

The DAX jumped to the highest level in almost two months, reversing shy of 13300. Our profit target appeared to be small, compared to the fact that yesterday’s bullish move turned out to be a more than 400-points-jump.

The euro hit 1.1920 before price reversed. In short-term time frames we now expect further losses in the EUR/USD.

The cable failed to find a clear direction and traded between 1.3210 and 1.3115.

 

Disclaimer: All trading ideas and expressions of opinion made in the instructions are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

 

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Euro And Pound With a Tailwind – Is The Rise Going To Continue?

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Dear traders,

Basically, we got what we have been looking for – price breakouts that provided some profits for traders- even though not as big as we hoped for.

The EUR/USD broke above 1.1830 but stopped its rise at 1.1859 – for now. If the pair is able to hold above 1.18, we focus on a higher target at 1.1950. If bulls are however unable to stabilize the euro’s price above 1.1830, bears might regain control and push the pair back into its recent downtrend channel.

The GBP/USD broke above 1.31 and headed towards 1.3160 on the back of a weakening U.S. dollar on the one hand and a bigger-than-expected increase of the Bank of England’s QE program on the other hand. A higher target is seen at 1.32 while the 1.30-level turns into a crucial support again.

The Federal Reserve made no change to asset purchases while stressing that the U.S. economy needs more fiscal and monetary policy support, opening the door to a possible shift in coming months.

As for the U.S. election, Joe Biden holds his lead in many battleground states while President Donald Trump questions the credibility of the election. The results still remain uncertain.

This crucial trading week comes to an end and the last but important report will be the U.S. non-farm payrolls report due today at 13:30 UTC.

Have a wonderful weekend everyone!

 

We wish you good trades!

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This Week To Set The Tone Until Year-End

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Dear traders,

We welcome you to a crucial trading week that has a potential to set the tone for financial markets for the rest of the year.

The main event will be tomorrow’s U.S. election, with Democratic nominee Joe Biden leading President Donald Trump in polls. However, the senate may matter more for the markets than the President since a so-called “blue wave” (Democratic sweep) scenario is believed to be priced in and if Biden wins the presidency but his party does not gain enough seats in the Senate than we will have the worst scenario for the market.

In short, a divided government will be poison for the markets while a shift in control in the Senate (blue wave congress) could quickly pass a large stimulus plan, which is considered market friendly. But we bear in mind, that despite a Biden lead, Trump has a narrow but viable path to an election win, even though the surprise 2016 election result is less likely this time.

Given the fact that the coronavirus pandemic is driving record numbers of people to vote by mail and counting all votes could take days, or weeks we may need to wait longer than usual to learn who won the presidential race this year.

Whatever the outcome, we will prepare for swings on either side to get the best out of the market’s reaction.

While the U.S. election is front and center in the coming days, we also have the Bank of England and Federal Reserve meeting (Thursday) as well as the U.S. labor market report (Friday) on this week’s calendar.

The Bank of England is widely expected to add to its own bond-buying program as new coronavirus lockdowns put pressure on policy makers to act. The new lockdown in U.K. could also bolster talk of negative interest rates, which could weigh on the pound.

The Federal Reserve, which also meets this Thursday, has signaled that it’ll do what’s needed to keep borrowing costs contained.

This week will most likely be accompanied by a sharp rise in volatility, which is why traders should prepare for larger and sharper market movements.

We wish everyone good trades and hopefully a good profit!

We wish you good trades!

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Secure Your Profit Now And Fasten Your Seat-belt For Next Week

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Dear traders,

The European Central Bank stood pat for now and finally did not surprise the market at yesterday’s policy decision. Policy makers, however, paved the way for a fresh easing package in December. The ECB held its pandemic bond-buying program at 1.35 trillion euros, reiterating that it will run until at least June 2021 and won’t be stopped until the “crisis phase” of the pandemic is past.

The euro reacted in line with the market’s expectations and slid slightly lower to a low of 1.1650. We were able to book a good profit yesterday by trading our short entry.

Fasten your seat-belts for next week’s U.S. election while uncertainty remains elevated. Volatility is expected to pick up next week and traders around the globe prepare for large market movements.

We will be back on Monday and until then we wish you a wonderful and relaxing weekend!

 

We wish you good trades!

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Final U.S. Presidential Debate Leaves Market Unaffected

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Dear traders,

While the tone of the final U.S. presidential debate was much more civil that the first debate it gave traders little reason to shift their stances before the election on November 3 with the market showing no reaction during the debate.

The U.S. dollar traded slightly higher against the euro and pound but no big market moves were seen Thursday.

The DAX broke below 12400 and slid to a low of 12342 which was only a few pips away from our profit target TP100. However, we were able to book a good profit before the index recovered its losses.

Today is the last trading day of the week and we will save our weekly profit and wish everyone a wonderful weekend!

 

We wish you good trades!

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USD Remains Weak, EUR And GBP With a Slight Tailwind

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Good morning everyone!

The U.S. dollar remained under pressure amid optimism about progress on stimulus talks in Washington. White House Speaker Nancy Pelosi said she is hopeful for a stimulus agreement this week which would be bigger, better and retroactive. However, with the U.S. election looming the dollar’s fate will mainly hinge on the election outcome.

Looking ahead to the European Central Bank meeting next Thursday ECB President Christine Lagarde said the unexpectedly early pickup in coronavirus infections is a “clear risk” to the economic outlook, which could be a sign that policy makers are preparing for more monetary stimulus. Investors largely expect the ECB to wait until December before boosting its 1.35 trillion-euro pandemic bond-buying program. Updated projections for growth and inflation that could justify more action will be announced at the ECB meeting in December.

As anticipated in yesterday’s analysis, the EUR/USD broke its narrow price range and could now be heading toward 1.1880 or even 1.1915, provided that the 1.1850-level gives way to further bullish momentum in this pair.

The picture was completely different in the GBP/USD, which consolidated between 1.2980 and 1.2910 Tuesday.

 

We wish you good trades!

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Pound Trades Resiliently Amid Brexit Headlines

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Dear traders,

We welcome you to a new trading week.

Traders of the GBP/USD have been on a roller-coaster ride Friday with the pound failing to find a clear direction and trading choppily between 1.2963 and 1.2863.

The British pound was resilient to negative Brexit headlines after negotiations over a Brexit deal have stalled with Boris Johnson announcing on Friday that he will focus on preparations to leave the EU’s single market and customs union at the year-end without a trade deal. End of October/ Early November is the last likely moment a deal can be struck and implemented until year-end.

With 15 days to go until the U.S. election, polls show increasing odds of a Democratic sweep and the market thus sees increasing chances of larger economic stimulus. The upcoming election will determine main market moves and if polls suggest a too-close-to-call election volatility will rise quickly.

The final presidential debate before the U.S. election, between President Donald Trump and Joe Biden, will be live from Nashville, Tennessee on Thursday.

 

We wish you good trades!

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British Pound Climbs on Hopes of Brexit Deal

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Dear traders,

It has been a rocky trading day Wednesday with the euro and cable finding a short-term support before they managed to recover some lost ground against the U.S. dollar.

The British pound climbed as investors awaited more news on Brexit negotiations. The U.K. and EU consider the end of October or first days of November as real deadline for getting a deal. The U.K. will leave the bloc’s single market and customs union with or without a new trade agreement when the 11-month transition period expires on December 31, but any deal has to be approved by the British and European parliaments before then.

The DAX hasn’t served us well yesterday and neither bullish nor bearish momentum provided any profitable trading chance.

Let’s see what today brings.

 

We wish you good trades!

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U.S. Inflation data In Focus

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Dear traders,

Monday’s trading was quiet with the U.S. dollar slightly appreciating versus its peers but without any profitable trading chances. Volatility was also muted due to a public holiday in the U.S. Monday, so let’s see what Tuesday brings.

We will keep an eye on the U.S. inflation rate release today at 12:30 UTC.

Investors weigh a potential setback on progress toward a coronavirus vaccine after a report that Johnson & Johnson’s Covid-19 vaccine study has been paused due to an unexplained illness in a participant. Any delay in the Covid-19 vaccine progress is generally considered dollar positive.

The uncertainty around the U.S. election and uncertainty about the timing and effectiveness of a vaccine will be the main market movers.

EUR/USD: Resistance is currently seen at 1.18 whereas the pair may find a short-term support at 1.1770.

GBP/USD: Cable has a strong support-zone between 1.30-1.2950. For accelerated bullish momentum we will need to see the pair trading above 1.3070 with a higher target at 1.3115.

DAX: If the index falls back below 13050, we may see a dip towards 13000. Remaining above 13100 higher targets could be at 13220.

 

We wish you good trades!

Any and all liability of the author is excluded.

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