DAX Index On a Roll

The DAX index continues to trade in a strong manner as the euro has been suffering a great deal over the last few days. The euro has been on the backfoot ever since the range, that it was in over the last few months, was broken and from that time, the euro has been falling in a slow and steady manner.

DAX Strengthens Further

The fall was started by the feeling that the QE tapering and ending would be delayed by a much larger time than what was originally planned and expected. The incoming data being weak was one of the contributors for this line of thinking and the fact that the ECB and Draghi did not sound so confident about the economy this time around has also set the cat among the pigeons as the traders have responded to this by selling off the euro. The incoming data since then has also been very weak and this is only adding to the pressure on the euro.

This is having an opposite effect on the DAX as it has move from strength to strength and it has also broken through the long held range though on the higher side. It is likely that the index would continue to move higher as the anticipation over the delay continues to grow in a slow and steady manner over the next few days as well. It remains to be seen how the market would react when the index gets close to the 13000 region which is likely to witness a lot of selling.

Looking ahead to the rest of the day, we expect the risk sentiment around the globe to continue to be good and this should help the index to remain buoyant for the rest of the day. The data from the US is unlikely to have too much of an impact on the index as such but that should help to improve the overall mood.