Yahoo Finance DAX Index Daily Fundamental Forecast – March 21, 2018
The DAX index managed to wriggle out of the lows of the range and successfully able to push away the pressure that it was under and this has helped the index to move through the 12300 region once again as it continues to dawdle in the large range. We could see some volatility during the later hours of today as the FOMC comes out with their announcement but as that announcement concerns the US, it is unlikely to have too much of an impact on the DAX.
DAX Still in Range
The DAX has been under pressure for sometime now and as we have been saying many times over now, it is likely to continue to be so in the medium term as the data from the Eurozone gets better and the pressure on the ECB to begin tapering of the QE increases. This is likely to lead to the end of the QE by the end of the year and once that happens, we are likely to see the index under even more pressure as this will be the case after a long time that they are not going to be supported through free funds.
This is likely to affect the circulation of the funds within the stock market and once that happens, it is going to add the pressure on the buy side and hence the stock markets are likely to slide even more. It is important for the bulls to keep this in mind and push the index to keep it buoyant else we are likely to see it slide even more in the coming weeks. The bulls also realise that and that is why we are seeing the index continuing to stay within the range despite the pressure on the DAX.
Looking ahead to the rest of the day, we do not have any major news from the Eurozone or Germany but we have the FOMC rate announcement later in the day where it is expected that the Fed would hike rates. This could bring in some volatility.
This article was originally posted on FX Empire
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