Money Flow at the start of European markets

Despite the new Dow Jones Industrial Average record, moods remain mixed minutes before the launch of the European interbank market, so cash flows will be focused on the volatile trading of European equities and the purchase of Safe Haven instruments.

Indicative prices for opening European indexes
DAX30 - 12,291 or 15 points increase
CAC40 - 5,470 or a 5-point increase
UKX - 7,477 or a 3-point loss

Due to the poor performance of car manufacturers in Japan, I expect that this sector will be sold out in today's European session.

The euro benefits from Italy's plans to reduce the budget deficit to 2% in 2021. The effect on the markets after these news was blurred, with EUR / USD rising. I expect positive attitudes to the common currency to be maintained for most of the session. GBP will remain under pressure as rumors of a proposal by Theresa May for a solution to the Irish border issue have failed. Following the strong upward momentum in CAD, today I expect the currency to register a slight withdrawal that short-term traders will use for a new long positioning.

Today traders are expecting retail sales in Europe, which will give an early indication of the movement of inflation in the bloc. The shift in employment in the US at 15:15 will give health signals to the labor market at rising interest rates. At 23:00, Fed President Jerome Powell will make a statement with investors looking for signs of the future of monetary policy in the largest economy in the world.

Picture: pixabay.com

Read more:

• US – Iran – Iraq tension remain the main driver of the stock market today
• How top market players on Wall St think 2020 will look like on financial markets
• Money Flow before the start of the new trading week
• Cincinnati Financial Corporation (CINF.US) -Opportunity for long positions
• Asia stocks gain as Fed signals no rate cuts in 2020