DAX Index Daily Fundamental Forecast – September 7, 2017

The DAX index moved higher during the course of the day yesterday as the risks began to ease on the markets and they responded by moving higher all around the world. Though the risks have receded for now, they are still around the corner and may rear their head at anytime and that is why it is important for the traders and the investors to be wary and not commit themselves too much at this point of time.

DAX Moves Higher as Risks Recede

The DAX index recovered and pushed through 12200 on generally positive global news and the relaxation in the tension in the Korean region for now. The market also rose in anticipation of the ECB press conference that is scheduled to be held today as the traders expect Draghi to be dovish during the conference. This is going to be the key for the trend in the short term as the euro has been moving higher and higher against a weak dollar and the ECB might get increasingly uncomfortable with the strong euro.

Draghi might attempt to talk down the euro today and if he manages to do that, then we should see the DAX and the other European indexes moving even higher. The other event of note in the short term is the situation in the Korean region where now, reports state that North Korea might launch a missile on Septmber 9 which is its National Day. This should ratchet up the risk levels by several notches and crush the markets in no time and hence the traders need to be careful and wary.

Looking ahead to the rest of the day, the focus and the attention would be clearly on Draghi and what he would be saying with regard to the strength of the euro and the timeline for the QE tapering. A break through 12350 should send the DAX rocketing to 12500 in the short term.