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High volatility is a calling card of this week

High volatility is a calling card of this week
Markets remain unstable. First of all, stock exchanges are feverish. Their daily ranges remain extremely large. Yesterday both DJI and S&P500 regained losses of the beginning of the week. American statistics also facilitated it. GDP for the 2nd quarter was revised upward above forecasts, the report on incomplete deals on houses sales was also quite good, though it didn’t reach forecasts. Actually, this time all statistical components of housing market were very good. Against such background dollar reached weekly maximums. Typically enough, dollar’s index returned to the range, which has kept for three months already. Speaking of today’s statistics, there are retail sales and preliminary data on inflation in Germany. Forecasts are contradictory – improved sales and decreased inflation indicators. Despite the significance of last indicator, its decrease is quite expected, since it reflects fall of resource prices as well as decline in food prices because of sanctions on export to Russia. Therefore, euro’s decrease after publication of the data can be limited. In the U.S.A., reports on personal incomes and expenses will be published. And there everything is stable and moderately positive for dollar. Considering local data, there is the second evaluation of British GDP for the 2nd quarter. Significant changes aren’t expected, so the influence of this indicator will be minimal. 
 
Trade tactics:
As before, we recommend staying out of the market. In such unstable situation, it is difficult to predict market’s reaction, it can be only guessed. And it increases risks of losses. 
 
Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information. 


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