By IFCMarkets
Improving German data bullish for DE30
Germany’s economic data of the last couple of weeks were not all bad. While trade and current account surplus fell more than forecast in April with factory orders dropping more than expected, construction activity contraction slowed in May and investors’ sentiment improved more than forecast for June. Thus, the construction PMI for May rose to 40.1 from 31.9 in April. Readings above 50 indicate expansion of activities in the sector, below 50 indicate contraction. And the ZEW indicator of economic sentiment for Germany increased for the third consecutive time reaching 63.4 for June from 51 in May when an increase to 60 was forecast. Both expectations and assessment of the current situation improved. The improvement in economic data is the result of reopening of economies after lockdown measures are being lifted gradually, as well as various stimulus measures. Thus, the European Council is meeting at the end of the week to discuss a recovery proposal by the bloc’s executive to raise 750 billion euros worth of debt to supplement spending worth 1.1 trillion euros in 2021-27. Positive data are bullish for DE30.
| Indicator | VALUE | Signal |
|---|---|---|
| MACD | Buy | |
| Stochastic | Neutral | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
| Order | Buy |
| Buy stop | Above 12431.28 |
| Stop loss | Below 11806.85 |
Market Analysis provided by IFCMarkets