Analytics › MARKET REVIEW, FEB 26 – MAR 02, 2018

MARKET REVIEW, FEB 26 – MAR 02, 2018

DAX30

Let's start our review with the "heart" of the German economy and there are a number of reasons to do that. Daimler is forced to recall almost 21 thousand cars from the Chinese market, S, C-class and GLC Sport. This time the incident occurred with seat belts, they just do not always work, which is absolutely unacceptable. This is not the first incident with the manufacturer. In October of the last year, Mercedes officially recognized and began to recall about 1 million cars due to malfunctions of the airbag control module, which could work "from time to time". Later, the "happy" owners of brand new cars had a chance, without getting into an accident, "plunge into the pillow", the manufacturer called it "unreasonable deployment of pillows". The carmaker assured that there were no fatalities, only bruisers.

Let's return to the index itself. Taking into account above said, you can expect the fall of the index in March. VW is forced to pay an impressive fee, Daimler will be forced to withdraw their cars. A significant blow to the German economy, which will definitely affect the positions of the euro to the main basket of currencies.
Verdict. Monitor the news, expectat of the significant drawdown as the DAX index, and the euro itself. In the short term movement down is expected , in the longer term - correction of the German index and economy.

MARKET REVIEW, FEB 26 – MAR 02, 2018

EUR / USD

The Euro ended last week with uncertain falling. As soon as Monday morning it has already begun to work out the lost price. The week promises to be no less interesting. The Super Mario starts the week with his performance, further inflation, unemployment rates, consumer climate, business activity in the EU countries and in the Union as a whole. The America starts the business week with the speech of FOMC member Bullard and new housing sales, on Tuesday (and also on Thursday) Jerome Powell is expected with his first report, consumer confidence index will be released at the same time. On Wednesday, the USA will announce 4Q GDP and traditionally crude oil reserves, and on Friday we are waiting for NFP! It will be an interesting trading week, given the height of the next scandal between the States and the German Daimler, which will certainly affect the resistance of this pair. At the moment, there is movement in the corridor 1,233-1,226, the level 1,230 showed to be very strong. It is difficult to talk about any strengthening of the euro at the moment as it is only in the hands of the EU. Tests of 1,233 and 1,230 on Monday is more likely to strengthen the European, having worked out the losses of last Friday. The week promises to be very productive, to give excellent opportunities for entering the market.

GOLD

The upcoming week started positively for Gold. The level of $ 1331 was broken and now the way to $ 1354 is open, which at the current stage is the strongest resistance level that the precious metal failed to overcome and it is likely to tbe the goal of this week. On Friday, March 2, the US unemployment report is expected, which will affect the value of gold. Everyone knows about the inverse relationship of the value of gold and quotations of the American currency.
A look from the technical analysis shows that gold is in a strong upward channel and in the absence of positive data from the American economy, nothing will prevent gold from continuing its upward movement.

MARKET REVIEW, FEB 26 – MAR 02, 2018


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