Despite the positive expectations for European markets, there are two factors today that will not allow bulls to take advantage. As you already know at 14:45, we expect the ECB's monetary policy decision. Changes are not expected, but investors will withdraw from risky assets, and this will lead to a reduced volatility, both in the EUR and the European indices. On the other hand, if we look at the details of investor behavior, we will notice a strong divergence between cash flow and price. At the end of the session yesterday, the price was up, while the cash flow remained in negative territory.
The indices are already traded and expected negativity takes precedence. I expect negative moods to be preserved during the day, and when the ECB decides to tighten monetary policy, we can see a new low.
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.