EU market session outlook and what to expect from USA

06.03.2017 / 14:11

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European trading session today indicates negative sentiment in stock indices, which might be due to caution and profit taking after the last bullish momentum in the market. The latest upward movement after the speech of US President that gave no clear reasons, no real news or any values, suggesting that there is possibility for profit taking after this highly speculative moment.

The light correction in the stock markets is leading to transfer of resources to the yen, which rose against its currency crosses.

Caution about GBP and divergent news from the island lead to a decrease in GBP, which affects all cross currencies: decline in GBP / JPY.

EUR/USD reached diagonal resistance levels, such as the inability to close above 1.0629 increases the likelihood of downward movement. Of course there is influence by the expected data from the US at 5:00pm - factory orders and orders for durable goods. Expectations are for stronger data which support the USD.

After the initial impulse for the appreciation of the JPY and decreases in the indices, we can now look back on corrective movement Morning trading or decrease of JPY.

The mood will have data 5:00 pm US factory orders and orders for durable goods. The data results are expected to be better that will support the USD.

The stock market is influenced by Trump. Financial season in the US is already over, as the motor of the shares remains the Trump expectations for details about tax policy. On the other hand it has already accumulated largely in stock prices. This is the reason for a possible correction in the stock market that we see today.

Markets now expect another interest rates hike in the US this month, which also has a negative impact on the shares in a short term. Money becomes more expensive, which can lead to a redirection of capital from the stock market to financial instruments with fixed income.

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EU market session outlook and what to expect from USA

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