DAX Index Daily Fundamental Forecast – January 5, 2018

The DAX index came back to the control of the bulls as some strong data from the Eurozone and Germany and combined with the improvement in risk sentiment around the globe, this was enough to give fuel to the bulls. This helped to push the DAX back into the range but the close was at the highs of the range which means that there is still some fuel left in the tank.

DAX Looks Higher

The stock indices in the US closed at record highs yesterday and this is likely to give a boost to the rest of the market around the globe today. There has not been much happening domestically in Germany and the bulls needed some support from somewhere and they found it in the form of improved risk sentiment in the stock markets. The index has since pushed through the 13100 region and looks set to move even higher.

This has basically negated the fall that had happened in the index over the last couple of weeks of last month and the control has now gone back to the bulls. Now, all that is needed is the conclusion of the talks from Merkel and if she is able to achieve that successfully, then it would be great news for the DAX in the medium term. But with that hanging in the balance as yet, we are likely to see the move higher being capped for now.

Looking ahead to the rest of the day, we have the retail sales data from Germany and the CPI data from Eurozone which is likely to add some volatility to the index. We also have the NFP data from the US which is also likely to have an impact on the markets globally. A combination of these could add even more fuel to the bullish run and help it to move through 13200.