European stocks have started the week in positive fashion this Monday as gains in the car sector helped recover some of last weeks losses. Germany’s DAX is now trading up over 1% and looks set to halt 6 straight days of losses, as jittery investors look for some stability following the worst possible start to 2016.
After a slight rebound above $33, Oil dropped to a fresh 12 year low at around $31, stemming from ongoing concern in China, uncertainty of suppy and the strengthening US dollar. Further rapid appreciation of the greenback could see oil edge closer towards $20 per barrel.
According to leading financial services provider Morgan Stanley, “Given the continued U.S. dollar appreciation, $20-$25 oil price scenarios are possible simply due to currency. The U.S. dollar and non-fundamental factors continue to drive oil prices.”
As investors prepare for corporate earning’s season, U.S stocks are expected to see a moderate recovery as investors look to shake the new year hangover of last week.
USD remains the strongest of the major currencies yesterday with gains against most currencies, except GBP of note as the pair bounces back from its recent multi-year low.
Gold for yesterday at least, has lost its shine although the precious metal is still above 1102 following its 1113 high last week.
Trading quoted of the day: “The markets are the same now as they were five or ten years ago because they keep changing-just like they did then.” – Ed Seykota
Important note: These technical and research reports are provided to easy-forex® as a subscriber of third party providers. They are provided for informative purposes only and in no way can they be considered as a recommendation by easy-forex® to you to engage in any trade. Hence, easy-forex® shall not be held responsible for any outcome of trading decisions, in regards with these reports or similar reports. You hereby acknowledge that using the information entailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against easy-forex®. If you do not agree to this, you are strongly advised not to use these reports.
Easy Forex Pty Ltd (AFSL 246566 ABN 73107184510) makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Easy-Forex recommends that you read the Regulation Page, The Product Disclosure Statement, the Terms and Conditions and the Financial Services Guide before making any decision concerning Easy-Forex’s products.