News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • (Gold Briefing) Gold Price Outlook Turns to UofM Sentiment as US Dollar, Treasury Yields Rally #Gold #XAUUSD #USD #Bonds https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/09/17/Gold-Price-Outlook-Turns-to-UofM-Sentiment-as-US-Dollar-Treasury-Yields-Rally.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/p7VdFesUb1
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/XPtqedJjyk
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/m6XH4n43UQ
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/yy64N01p2b
  • PBOC injects net 90 billion Yuan in open market operations - Yuan reference rate set at 6.4526 per USD - BBG
  • Australia to trial home quarantine for arrivals who are vaccinated - BBG
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/moWS7rqAQG
  • RT @FxWestwater: New Zealand Dollar Outlook: $NZDUSD Drops on US Dollar Bids, Wall Street Losses Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/16/New-Zealand-Dollar-Outlook-NZDUSD-Drops-on-US-Dollar-Bids-Wall-Street-Losses.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.c…
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/dRD22S792t
  • 🇳🇿 Business NZ PMI (AUG) Actual: 40.1 Previous: 62.6 https://www.dailyfx.com/economic-calendar#2021-09-16
DAX 30 Struggles to Break 14,000 as Covid-19 Remains a Serious Threat

DAX 30 Struggles to Break 14,000 as Covid-19 Remains a Serious Threat

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • Global equities trade a little softer as Biden hints at future tax hikes
  • Germany continues to register record daily new cases and deaths
  • DAX 30 struggles to achieve a consistent break above 14,000

Equities are broadly weaker this morning as Joe Biden hinted at tax cuts while introducing a new stimulus package last night. Meanwhile, the safe-haven Dollar is up despite the Fed pointing out last night that they will remain accommodative in the near future.

President-elect Joe Biden unveiled last night a stimulus package worth $1.9 trillion, an expected decision that was already discounted in the markets, but suggested tax hikes caused a small correction in equities, led mostly by the tech-heavy Nasdaq. The extra spending has caused bond yields to rise rapidly, fuelling a rotation from technology and value stocks to growth stocks.

Advertisement

In Europe, Covid-19 cases continue to rise rapidly, with new restrictions imposed in almost every country to try and combat the post-holiday wave. Germany continues to see shockingly high infection and death rates, with its highest death toll seen this week at 1,244 fatalities in just 24 hours.

DAX 30 Struggles to Break 14,000 as Covid-19 Remains a Serious ThreatDAX 30 Struggles to Break 14,000 as Covid-19 Remains a Serious Threat

Source: worldometers.info

German Chancellor, Angela Merkel, has urged senior officials to take fast action and further strengthen the restrictions in order to try and stop the rapid spread of the virus, while hinting that FFP2 masks may become mandatory.

Meanwhile, the minutes from the ECB’s monetary meeting in December were released yesterday, showing that the Central Bank is concerned about the length of the economic crisis given the second wave, with heightened risks of insolvencies as activity has reduced significantly. It also confirms the concerns regarding the strengthening euro as the recent appreciation could play a key role in the subdued inflation outlook, an ongoing concern of the ECB.

Looking ahead, the central bank is likely to remain on the side-lines as long as possible as the health crisis plays out, given that the short-term path of the economy is driven by the virus regardless of policy action and they have already pledged to keep monetary policy supportive until 2022. That said, the minutes show that there seems to be a divide between policymakers about the appropriate amount of stimulus, with some believing that the moveable ceiling of €1.85 trillion is too low, whilst other believe it is too high.

DAX 30 4-hour chart

DAX 30 Struggles to Break 14,000 as Covid-19 Remains a Serious Threat

The Dax has been struggling to achieve a consistent break above the 14,000 mark as local risk appetite has taken a hit from new restrictions, although momentum remains positive as price holds comfortably above the February 2020 high (13,830). Short-term support is also likely to arise at the 13,800 mark, where previous selling pressure has been halted. More immediate support can be seen at current price around 13,910, where an ascending trendline is holding for now.

Moving averages are stacked in bullish form, and the stochastic indicator on the 4-hour chart is showing that current price is venturing into oversold territory following on from this morning’s correction, which may suggest price will pick up further in the day.

A daily close above the all-time high seen on January 8th (14,134) would garner further bullish support towards the 14,200 mark, although overbought conditions remain on the medium term, so further corrections cannot be ruled out.

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES