Investors prepare for 'Big Thursday' with UK elections & ECB meeting

Investors prepare for 'Big Thursday' with UK elections & ECB meeting

Wednesday brought some important and significant moves. Euro was on a rollercoaster ride due to mixed rumours from the ECB. Oil tumbled on a surprising rise in inventories, while the Australian dollar gained on stronger GDP print. And guess what? It’s just a beginning as two crucial events take place tomorrow.

While the Australian dollar was the biggest mover today, there’s no doubt that the most volatile currency was the euro. The shared currency tumbled, then rebounded then tumbled again on rumours from the European Central Bank. The first rumour stated that the ECB is set to upgrade its growth forecasts, but at the same time the inflation forecast is to be lowered. That caused a sharp sell-off of the European currency that pushed the EURUSD close to an important level of support at 1.12. However, a rebound occured just after another rumour was published. It was more or less similar to the first one, but underlined an importance of the growth projections upgrade. So what could we expect from the euro tomorrow?

Brent Oil (-3.1%) has seen some strong selling in the past twenty minutes after an unexpected rise in DOE inventories. The market has been under pressure ever since the OPEC meeting last month and the latest leg lower has come on the back of a 3.3M rise in inventories. A decline of 3.1M was expected which would have been the 9th successive weekly drop with last week seeing a large decline of 6.4M barrels. You have to go all the way back to early April for a rise in US stockpiles and this release comes as another blow for oil bulls.

The Canadian dollar has seen some weakness in recent trade following a worse than expected building permits release. The Canadian building permits m/m came in at -0.2% and in doing so provided an unexpected contraction compared to the +2.4% expected. There was a small upward revision to the poor prior reading of -5.8% which saw it restated as -4.9% but overall this is still negative for the Canadian economy.

The Nasdaq 100 Index (US100 on xStation5) includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.The index has managed to multiply its valuation by a factor of four since the 2008 financial crisis. It is not surprising when we comprehend that Nasdaq index contains stocks such as Apple (AAPL.US), Amazon (AMZN.US), Facebook (FB.US) and NVIDIA (NVDA.US) that all have risen more than ten times. Our technical analysis shows that more gains could come in the future.

Amazon is one of the best performing technology company in the World. The company began its history with online sales of books, currently its offer encompasses grocery industry, digital entertainment and cloud computing services. The stock broke through $1000 in June and in this analysis we take a closer look at the company to asses if it still has an upside potential.

This Thursday could be the most interesting day so far this year for investors as there will be two huge events for European markets: the ECB meeting and UK parliamentary elections. 

About Author

Our research team will provide all technical and fundamental news as well as all inside information coming from London's City desks to help investors trade fx and stock markets. Be sure that you already follow our twitter account @XMarketsuk in order to be up to date with all latest analysis, news and inside information.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. X Markets and XSpot. do not take into account your personal investment objectives or financial situation. X Markets and XSpot. make no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any member of X Markets Websites’ team, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of X Markets and XSpot. This communication must not be reproduced or further distributed without prior permission.

Risk Warning: Forex (FX) and Contracts for Difference (’CFDs’) are complex financial products that are traded on margin. Trading FX and CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, FX and CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Past performance of FX and CFDs is not a reliable indicator of future results. Most FX and CFDs have no set maturity date. Hence, a CFD position matures on the date you choose to close an existing open position. Seek independent advice.