DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 07.06.2017
Yesterday we had quite a quiet day on the markets. Former FBI chief James Comey confirmed in a written statement that President Donald Trump had asked to block investigation regarding contacts of former security adviser Michael Flynn with the Russians. However, this did not cause nervous reactions. Today the former FBI chief testifies before the US Senate commission.
Today there may be lot more emotion, not just because of Comey’s testimony. First of all, due to today’s elections held on the Isles, which were to strengthen current prime minister in negotiations on the UK’s exit from European Union. Unexpectedly Conservative Party of Prime Minister Theresy May loses the lead in polls due to recent bombings in London. So there can be a lot of uncertainty today.
Another event is the meeting of the European Central Bank. Yesterday, the market was informed that the ECB will reduce inflation forecasts for the euro area to around 1.5% YoY for period 2017-2019. This is quite a dovish signal that can support German DAX and weaken the Euro. Somewhat expectations may be cooled down due to changes in forward guidance-monetary policy in the long run. It may come as a sign of normalizing policy parameters in the long term.
Yesterday morning Nikkei closed with a small gain of 0.02%. DAX index was down 0.14% and the S&P 500 went up 0.16%. German index has reversed from its historical high at 12878 points and headed to support near 12,600 points which stopped supply and again we can return to around 12800 points but breaking this area will open the way to next level of support near 12400 points. Note that today we can have high volatility and unexpected moves due to completed macro calendar.
DAX Intraday
After opening futures market,DAX broke clearly pivot point around 12690 points and is heading towards S1 support near 12640. In turn breaching over pivot point and round level 12700 can open the way to resistance R1 12740 points.
Key data for the DAX index
All day – Parliamentary Elections in the UK
13:45 – Decision on interest rates in the euro area
14:30 – Macroeconomic projections and press conference after the ECB meeting
