DAX Index Daily Fundamental Forecast – November 17, 2017
The DAX has bounced off from the lows below the 13000 region after being under some pressure since the beginning of the week. It has been a difficult month for the DAX so far in November as it has failed to break through the 13500 region after gaining a lot of momentum last month by the decision of the ECB to extend the QE.
DAX Remains Under Pressure
The DAX has failed to build on the momentum and it has also failed to carry on through the 13500 region and a brief period of consolidation in that region, it has since chosen to follow the global sentiment and move lower as risks begin to abound in different parts of the world. The German economy continues to perform in a strong manner as the various economic data including the economic sentiment has been coming in pretty strongly and this continues the trend of strong data from Germany.
But this has failed to enthuse the markets as the inflation continues to falter. This is something common that we are seeing throughout the eurozone where the inflation continues to be very less despite the other economic indicators continuing to be strong during the course of the last few months. This led to a drop below the 13000 region over the last couple of days which gave an opportunity for the bears to take over but they seem to have let it slip as the index has been able to recover back above it to close above 13000 yesterday.
Looking ahead to the rest of the day, it is likely that the DAX would continue to be under pressure as more and more threats from North Korea over missile launches begin to build. This is likely to keep the global markets under pressure and the DAX would also follow suit.
This article was originally posted on FX Empire
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