Liquidity moves by the Chinese central bank and dovish noises regarding the Fed meeting have seen markets make tentative gains this morning.
Last night’s US session saw the Dow finish at a new all-time closing high, with a fresh intraday high to boot, and the positive momentum has been carried across into the morning session in London. Added to this was news last night that the ‘No’ campaign still has the advantage – albeit a small one – over its rivals. The IG binary has seen the ‘Yes’ chance edge back to 19%, its lowest level since 12 September. With the postal votes having already been cast (and many of those likely to incline towards the Union), the ‘Yes’ campaign still has to make up much ground on the day, even with its late-stage surge in the polls. The stage is set for some significant volatility in GBP/USD during the overnight session on Thursday, with moves exacerbated by thinner volumes. Sterling remained in focus this morning as an overwhelming tide of data hit the newswires. Unemployment was down once again, but the modest rise in wages and no change in the MPC voting patterns meant that the pound could not hold on to $1.63 against the dollar.
US indices are looking more confident heading into the Fed meeting, as the US dollar sees some modest selling on expectations that the Fed meeting won’t see the ‘considerable time’ reference eliminated from the statement. Arguably this leaves the market as complacent about US interest rates as it was two weeks ago, but it will mean that equity indices should recover some of the upward momentum that has been lacking in recent sessions. Ahead of the open, we expect the Dow to start 12 points higher at 17,143.
Last night’s US session saw the Dow finish at a new all-time closing high, with a fresh intraday high to boot, and the positive momentum has been carried across into the morning session in London. Added to this was news last night that the ‘No’ campaign still has the advantage – albeit a small one – over its rivals. The IG binary has seen the ‘Yes’ chance edge back to 19%, its lowest level since 12 September. With the postal votes having already been cast (and many of those likely to incline towards the Union), the ‘Yes’ campaign still has to make up much ground on the day, even with its late-stage surge in the polls. The stage is set for some significant volatility in GBP/USD during the overnight session on Thursday, with moves exacerbated by thinner volumes. Sterling remained in focus this morning as an overwhelming tide of data hit the newswires. Unemployment was down once again, but the modest rise in wages and no change in the MPC voting patterns meant that the pound could not hold on to $1.63 against the dollar.
US indices are looking more confident heading into the Fed meeting, as the US dollar sees some modest selling on expectations that the Fed meeting won’t see the ‘considerable time’ reference eliminated from the statement. Arguably this leaves the market as complacent about US interest rates as it was two weeks ago, but it will mean that equity indices should recover some of the upward momentum that has been lacking in recent sessions. Ahead of the open, we expect the Dow to start 12 points higher at 17,143.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.