A quiet start of a quiet day
24 April 2023
Monday will probably be a very quiet day, as the calendar is empty and no influential events took place over the weekend. The only key data today was already published and it was the German Ifo Business Climate who came in line with expectations at 93.6. The Euro is currently gaining strength, but it is really hard to imagine that the Ifo could have any influence on this.
The European session started with a rise in oil. Considering the previous drop, we can perceive this rise as a small correction, profiting from the previous short positions. It is quite interesting, as oil was on the way to close the bullish gap created after the OPEC+ cut. We have not closed this gap yet and thus we may assume that the downswing should resume soon.
Indices started this week with a drop and close to the local lows. The decline is controlled, though, and of low volatility. Considering all this, we can assume that it is still a correction and not a reversal, as many bears would like to see it. DAX is doing exceptionally well and its Friday rise was really amazing. This strength from the German index can be really promising for buyers.
On the Forex market, we do not see any dominant moves at the moment. The markets are still trying to find a direction. We can see a nice rise in the Euro, which can be especially important on the EURGBP. The price here is on the upper line of the symmetric triangle pattern, which may indicate a tendency for a breakout. The next few days should give us an answer.