The DAX moved in both directions yesterday, the day after the Fed meeting, but at the end of the day settled roughly at the level of the market opening. Today we await German GDP figures for Q4, which are forecast to be down 0.3%. If the GDP does not meet expectations, the index could go down again. The only support then could come from the numerous figures that will subsequently be published for the euro area, although expectations here are not very positive either. In the event of a positive surprise, the German benchmark index could continue its recovery and target the 15,800 mark.

If the GDP data for the largest economy in the euro area is worse than expected, the euro could also be significantly affected. In such a scenario, the EUR/USD pair could test the 1.10 level. However, if the figures turn out better than expected, a temporary recovery to the 1.12 mark cannot be ruled out.

Advertisment

Risk Warning / Disclaimer

The author's assessments of market behaviour do not constitute any financial advice or any solicitation or recommendation to buy or sell financial products, but are merely a personal opinion.We exclude any liability for damages arising from the use of the information contained in or implied by the text. If you enter into trading with leveraged financial products or derivatives, you must be aware that a loss up to the amount of your deposit and beyond, including a margin call, may occur.  Actively familiarise yourself with trading or seek independent advice before investing your own money and only use capital whose loss you can bear in the worst case.