It is a quiet start to the new trading week, with markets looking quieter than usual. But I feel that things are going to change quickly, because after just a few days we have the ECB's decision on the EU base rate (Thursday), with market participants expecting a 20 basis point drop in rates.
In addition, I expect the risk of sentimentality to remain the determining factor driving stock and FX market quotes, at least until the proposed US-China trade meeting in October.
After a very strong week, no correction has been ruled out for the US stock indexes, and in days like today (without major economic news), traders will trade mostly common rhetoric - trade war, shrinking global economy and rumors of recession. With so many negatives, the positives remain limited in number, so it is entirely possible for us to see market downturns, at least until a predetermining catalyst emerges to re-instate confidence in traders.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.