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DAX – Steady Ahead of Trump Congress Address

The DAX Index has posted small losses in the Tuesday session. Currently, the DAX is trading at 11,816.00 points. On the release front, there are no major events in the eurozone. In the US, Preliminary GDP is expected at 2.1%. As well, President Donald Trump will address a joint session of Congress. On Wednesday, Germany releases three key events – Preliminary CPI, Unemployment Change and Final Manufacturing PMI.


Eurozone indicators started the week with mixed results. M3 Money Supply, which measures growth in the amount of money circulating in the eurozone, slowed to 4.8%, down from 5.0% a month earlier. This indicator is closely watched, as it often predicts economic activity. There was more positive news from bank lending to households, which improved for a third straight month, rising to 2.2% in January. Credit levels have been moving upwards since 2015, but have only recently shown strong gains. With inflation indicators also pointing upward, the ECB’s stimulus program could finally be producing results. The central bank last took action in December, when it extended its asset-purchase program for six months until December 2017, but reduced purchases from EUR 80 billion to 60 billion/mth. If Eurozone indicators continue to indicate modest growth, the ECB is unlikely to tinker with the asset-purchase program.

Investors across the globe will be watching closely, as President Trump delivers remarks to a joint session of Congress on Tuesday. Although it is not officially a State of the Union address, the speech could have significant ramifications for the financial markets. Since Trump’s election win, the stock markets are sharply higher and the US dollar has jumped 3.7% against the euro, but the greenback has lost ground since Trump has become president. It’s crunch time, as the markets want to hear some details about Trump’s economic agenda. Trump recently promised to unveil a “phenomenal” tax reform package and significant spending on infrastructure, but hasn’t provided any details. Tuesday’s speech marks a critical opportunity for the new administration, which is still trying to find its bearings after a rocky first month. If Trump fails to present specifics in terms of numbers or at least some timelines, market sentiment will likely sour and this could hurt the US dollar.


Economic Calendar

Tuesday (February 28)

Upcoming Key Events

Wednesday (March 1)

*All release times are EST

*Key events are in bold


DAX for Tuesday, February 28, 2017

DAX, February 28 at 5:35 EST

Open: 11,843.50 High: 11,848.50 Low: 11,795.50 Close: 11,817.50

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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