DAX in red as investors seeing blue

The DAX index continues to trade in red territory. The pair has posted sharp losses in the Wednesday session and is trading at 12,234, down 1.00% on the day. There are no major events on the schedule. On Thursday, Germany releases the Wholesale Prices Index and the eurozone well publish the trade surplus.

It’s been a rough August for the DAX. The index has declined 4.6%, wiping out the gains made in July. The DAX is currently at its lowest level since the first week in July. These losses have corresponded with strong losses from the euro in August, reflective of investors showing a preference for assets like the U.S dollar over the euro and European shares.

Eurozone GDP was within expectations in Q2, but investors were not impressed by the economy’s growth, which posted a modest gain of 0.4% for a second straight quarter. The estimate stood at 0.3%. German ZEW Economic Sentiment gained ground in August but still remains in negative territory, with a reading of 13.7 points. Weak growth in the eurozone and trade tensions with the U.S have affected investor sentiment, and this has been reflected in weaker share prices in

  Commodities Weekly: No traction for commodities as the dollar softens

 

Economic Calendar

Wednesday (August 15)

  • 5:32 German 30-year Bond Auction. Actual 0.94/1.6

Thursday (August 16)

  • 2:00 German WPI. Estimate 0.5%
  • 5:00 Eurozone Trade Balance. Estimate 17.0

*All release times are DST

*Key events are in bold

 

DAX, Wednesday at 9:10 DST

Previous Close: 12,358 Open: 12,397 Low: 12,198 High: 12,426 Close: 12,216

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.