DAX Index Daily Fundamental Forecast – May 04, 2017

As has been the case over the past few weeks, the DAX index always seems to make some progress during one day and then spend the following few days in a tight and consolidation range. This is what we saw yesterday as well as the traders digested the gains made in the DAX since the beginning of the week. Though the currency markets were rocked by the positive news from the US, it had little effect on the DAX which continues to trade above 12500 as of this writing.

DAX In Consolidation Mode

There was not much data from the Eurozone yesterday and so there was no fundamental push on the DAX. But things seem to be getting a bit ugly over the Brexit process with the ECB President Juncker and the UK PM May trading charges and building themselves up for the Brexit negotiations that are set to begin in a few months time. With Germany being a large part of the Eurozone economy, it is only a matter of time before Germany and Merkel steps into the negotiation zone and begins to take part in such statements and this is when we are likely to see some serious volatility in the DAX.

Till that time, we are likely to see some smooth sailing for the DAX bulls who are firmly in grip of the index for now and seem to be moving it higher and higher on their will. The corrections in the index have been few and far between and this has helped to improve the investor confidence in the index which has helped to push the DAX even further.

Looking ahead to the rest of the day, we do not have any major news from the Eurozone and with the NFP out tomorrow, we can safely expect the DAX to continue to consolidate today with a bullish bias.