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Published on 8 May 2017
Following
the well taken long positions for Emmanuel Macron to win the French
presidential election, European equity markets started with a brief
relief rally, but soon traded lower.
Traders saying that it was the travelling rather than the arrival that was the interesting part.
As BlackRock has said, the fund manager remains positive on European equity markets, in part driven by a return to positive earnings and also a recovering Eurozone economy. Additionally the potential for a receding euro also giving European equities a chance to shine. This would seem to indicate the opportunity to ‘buy the dips’.
Research has shown that our of the last ten years nine times the month of May has been a negative month for the euro and the descending resistance trend line on the weekly EUR/USD chart would seem to confirm that there is a consider able headwind for the single currency ahead?
Elsewhere, UK house prices are down again on a month on month basis. The Halifax says that it has been the worst start to a year since 2011 for house prices across the country. However, as shown in the report here, the FTSE 350 household goods and construction sector remains well bid as house prices remain up year on year.
Finally, we also chart Bitcoin, looking on course to strike new record highs. However as Jeremy points out the security is overbought and possibly due a correction although the shape of the last two candlesticks indicating the bulls are still dictating trade.
#news
@CVecchioFX
Traders saying that it was the travelling rather than the arrival that was the interesting part.
As BlackRock has said, the fund manager remains positive on European equity markets, in part driven by a return to positive earnings and also a recovering Eurozone economy. Additionally the potential for a receding euro also giving European equities a chance to shine. This would seem to indicate the opportunity to ‘buy the dips’.
Research has shown that our of the last ten years nine times the month of May has been a negative month for the euro and the descending resistance trend line on the weekly EUR/USD chart would seem to confirm that there is a consider able headwind for the single currency ahead?
Elsewhere, UK house prices are down again on a month on month basis. The Halifax says that it has been the worst start to a year since 2011 for house prices across the country. However, as shown in the report here, the FTSE 350 household goods and construction sector remains well bid as house prices remain up year on year.
Finally, we also chart Bitcoin, looking on course to strike new record highs. However as Jeremy points out the security is overbought and possibly due a correction although the shape of the last two candlesticks indicating the bulls are still dictating trade.
#news
@CVecchioFX
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