GER30 weekly action is positive, setting up potential opportunities for this week
The GER30 shows relative bullishness on its weekly chart.
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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The GER30 shows relative bullishness on its weekly chart.
As the real yield has diminished, the NAS100 has found support.
Despite the surprise 50bps hike, market interpretation of relative central bank aggressiveness will be critical in the EURUSD direction
The household sector is showing weakness from numerous economic indicators.
US30 turns risk-off following the report that President Biden has tested positive for Covid.
The US30's strength may prove to be a bounce in a downtrend.
The USDOLLAR has pulled back, but this may be a dip in the uptrend.
Gold's longer-term trend is influencing its short-term chart.
Oil has benefited from the recent dollar decline, with both UKOil (Brent) and USOil (WTI) CFDs moving into the neutral areas between their blue bands (green rectangles).
Considering the weekly timeframe, FXCM's Nasdaq CFD, NAS100, shows a decline (top chart) as the real interest rate appreciates (middle chart). As risk increases, capital will rotate out of the risk asset into a safer income-yielding investment. Moreover, the NAS100's required rate of return has increased, and its present value has adjusted downwards.
Inflation is still in focus as the US printed at 9.1% - the fastest pace since 1981. Bank of Canada surprises with 100bps to front load hikes due to inflationary concerns. Waller and Bullard talk down hike expectation to 75bps from 100bps. Fed funds rate has 75bps at 70% for 27 July hike. Bank earnings disappoint; this week, NFLX and Tesla kick off the tech side. Housing data is in…
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