DAX Hits 7-Week High as Risk Appetite Improves

The DAX index continues to post gains this week. In the Tuesday session, the DAX is trading at 12,439.50, up 0.60% on the day. For a second straight day, there are no German or Eurozone events on the schedule. On Wednesday, Germany will release Final CPI and WPI, and the eurozone publishes employment change and industrial production.

European stock markets continue move higher, boosted by renewed investor appetite this week. The DAX has gained 3.7% in September, and is trading at its highest level since July 20.

The US dollar suffered broad losses last week, as tensions rose in the Korean peninsula after North Korea tested a hydrogen bomb. This weighed on risk appetite, and the euro jumped on the bandwagon, gaining 1.3 percent against the greenback. With North Korea celebrating its 69th anniversary of independence, there were concerns that Pyongyang would use the occasion to flex some muscle and test a nuclear bomb or missile.  There were no incidents over the weekend, although the US, along with its allies Japan and South Korea, remain on alert for further provocations from the north. The dollar responded with gains on Monday, as EUR/USD dipped below the symbolic 1.20 level.

Record Highs Expected as North Korea Fears Subside

Economic Calendar

Tuesday (September 12)

  • There are no German or Eurozone events

Upcoming Events

Wednesday (September 13)

  • 2:00 German Final CPI. Estimate 0.1%
  • 2:00 German WPI. Estimate 0.1%
  • 5:00 Eurozone Employment Change. Estimate 0.3%
  • 5:00 Eurozone Industrial Production. Estimate 0.0%
  • Tentative – German 10-y Bond Auction

*All release times are EDT

*Key events are in bold

DAX, Tuesday, September 12 at 8:25 EDT

Open: 12,522.75 High: 12,555 Low: 12,511.50 Close: 12,549

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

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.
Kenny Fisher

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