Gold Prices Are Being Squeezed by a Strengthening Dollar

European Shares

EU shares continued to drift on Tuesday, following another volatile session in Asia, as traders await this week’s central bank meetings. Most benchmarks traded lower in Europe, with all sectors moderately down, as investors weighed the latest patchy macro data from France and Germany, the two biggest economies of the Eurozone. In addition to uneven macro data, market sentiment has also been negatively impacted by the latest batch of disappointing corporate results showing a drop in earnings per share as well as toneless revenues. Despite lingering enthusiasm towards riskier assets, investors will likely need some further bullish catalyst in order to stay invested in equities, and many hopes are already directed towards the next meeting of both the Federal Reserve and the ECB and the expectation of a less aggressive tone from central bankers. The DAX-40 index still trades above the 15,000.0pts mark but remains inside a broader trading range between 14,900pts and 15,280.0pts as investors wait for some trigger to drive prices into a much more directional movement.

Pierre Veyret– Technical analyst, ActivTrades 

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