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  4. Improved PMI Index Raises Investor Morale Awaiting Fed

Improved PMI Index Raises Investor Morale Awaiting Fed

December 16, 2020 14:30

Activity in the euro zone recovered slightly in December: 

  • The PMI index advanced by IHS Markit, corresponding to the month of December, was better than expected, standing at 49.8 from 45.3 the previous month, already touching 50, the figure that limits growth and contraction. 

This positive data, together with the advances in the Brexit agreement and the imminent arrival of a vaccine against Covid-19 in Europe, has improved the mood of investors. All of this, despite new restrictions announced in several countries, such as Germany.

The main European Indices are registering gains close to 1%:

  • The DAX is up 1.5%
  • The FTSE 100 is up 1.05% 
  • This follows the positive tone with which they started the week and continuing in the wake of Wall Street. 

Will this be the start of the Christmas rally?

Optimism has also had a favourable impact on the euro, which is strengthening against the dollar. This bullish sentiment could take the European currency to levels close to 1.25. Evolution of the past 5 years: 2019 = -2.21%, 2018 = -4.47%, 2017 = +14.09%, 2016 = -3.21%, 2015 = -10.18%. 

Source: Admiral Markets MetaTrader 5. EURUSD daily chart. Data range: from October 30, 2019, to December 16, 2020. Prepared on December 16, 2020, at 11:30 a.m. Keep in mind that past returns do not guarantee future returns.

Investors also remain awaiting the Federal Reserve meeting on monetary policy and, above all, the subsequent appearance of Jerome Powell, as he will comment on the economic outlook for the United States and perhaps advance new stimulus.

 

Did you know that you can speculate on the direction of the EURUSD using Contracts for Difference (CFDs)? This allows you to potentially profit from both bull and bear markets. Get started with a free demo trading account today!

How to trade EURUSD with Admiral Markets UK Ltd.

To get started, follow these 5 easy steps:

  1. Log into your existing trading account or open a real or demo trading account in just a few minutes.
  2. In the Market Watch box look for the EURUSD symbol.
  3. Drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or click New Order.
  5. Choose the entry level, stop loss and take profit and order size (volume) and then confirm the trade.

You can observe the changes in its price and operate with the MetaTrader trading platform:

 INFORMATION ON ANALYTICAL MATERIALS:

The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter "Analysis") published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:

  1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.
  2. Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.
  3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.
  4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter "Author") based on personal estimates.
  5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.
  6. Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset's value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.
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