Europe is about to launch one of the worst sessions in the past month after sales in the US and Asia. Technological companies are expected to see the strongest decline. As a trader, it is most logical to go there, looking for intraday opportunities for shortening. I expect, after the launch of the European interbank market, that JPY purchases remain in vogue, and that European indexes are heading to new bottoms. Given the expected volatility, it is good to target sales of European indices and technology companies for a shorter timeframe.
Today, at 15:30, we expect US GDP data, with expectations for a 3.3% drop from 4.4% over the previous period. The news will directly affect the USD and the stock market, with better data than the expected 3.3%, resulting in a short-term upward momentum in the indices and USD, and worse, would crash USD from the tops and send the indices to even lower levels .
Later in the day, at 5pm, Mario Draghi will hold a speech in which investors will look for hints about a possible change in the ECB's tone on monetary policy. Any such change would have a positive impact on the EUR, whereas a lack of such a change would have no effect on the United Currency.
Indicative opening prices of European stock indices:
UKX: 7056.9 -46 points
DAX: 11716 -128 points
CAC: 5146,23 -45 points
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