The ECB turns everything upside down – Market Overview

The ECB turns everything upside down – Market Overview

A report by the European Central Bank, published by the Bloomberg agency, reveals a different assessment of the central bank's attitude towards the long-term rise in interest rates.

Before this, the statements of different ECB members had shown their determination to prevent long-term rate hikes from slowing down the recovery process of the European economy. They even mentioned the possibility of increasing the volume of the asset purchase program, intensifying the expansionary monetary policy. After these statements, the immediate effect on the market was the depreciation of the euro and a decline in sovereign bond yields.

According to the Bloomberg report, such concerns don’t seem to exist. The ECB does not plan to take drastic measures to curb recent developments in the bond market, as they believe the risk is manageable through verbal interventions and flexible QE programs.

After the report was unveiled, markets reversed all the euro's downward movement experienced the previous day.

EUR/USD has corrected up to the 100 hourly SMA zone, around 1.2090, acting as resistance in the short term. Above this zone, the pair could work its way higher to 1.2180.

However, everything could largely depend on the evolution of the US Dollar, which has undergone a downward correction today but can be influenced by American bonds' long-term interest rates. In this sense, the 10-year bond yield has recovered lost territory to the level of 1.44%, a movement that, if continued, would positively affect the price of the US Dollar.

The economic data published today in Europe, with the German services PMI showing a reading of 45.7, below last month's figure of 46.7, reveals the decline experienced in Europe as a result of the lockdown measures that mainly affected the services sector.

Despite the negative data, the European stock markets started the day in the green, with Germany30 index rising around 1% during the European session.

Technically, the index is near a major resistance zone around 14,180 (record highs), the breakout of which paves the way for further gains. The RSI shows no signs of retreating on the daily chart, finding itself below the overbought zone with enough room to continue higher.

Sources: Bloomberg, Reuters.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.