Will The DAX Break Above 19700?
Welcome to the final trading month of the year.
The Federal Reserve is still expected to cut interest rates by 25bp at the Fed’s final meeting for the year on December 18. Investors are bracing for a potentially slower pace of rate cuts in 2025 amid still sticky inflation and expectation of inflation in the long term under Trump’s protectionist policies. However, economists still see a generally stronger U.S. dollar given the continued resilience of the U.S. economy and a worsening outlook elsewhere.
This week’s focus will be on Friday’s nonfarm payrolls data for November.
As for Europe, political uncertainty in France is weighing on the euro. Investors wait to see if France’s government can survive the week intact.
EUR/USD: Dipping again back below 1.0490 could see another leg down towards 1.0350.
On December 12, the European Central Bank is seen cutting rates, with an even 27 percent chance ECB policy makers might ease by 50bp.
DAX: Will the Index break the 19700-mark? We see a current support at 19400 and as long as the DAX can hold above this threshold we anticipate an upside breakout above 19700.
Disclaimer: All trading ideas and expressions of opinion made in the articles 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.
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2024 MaiMarFX.
