Equities lacked direction in the European session, as investors sat on the side-lines waiting for developments regarding the US – Sino trade talks. With the 13th round of talks due to kick of imminently and contradicting headlines leading up to the start, its anyone’s guess as to whether the two powers will be able to hammer out a deal.

Whilst hopes of a broad, far reaching deal are as good as dead, optimism surrounding a limited deal still exists. This would still be a significant improvement on the current uncertain situation; in the eyes of the market this would still be a win.

The FTSE was trading ahead of its peers with miners leading the way, whilst Brexit battered house builders dominated the lower reaches. Brexit uncertainty has weighed heavily on the UK housing market, with house prices recording the slowest growth in 6 years. A no deal Brexit would hit housing demand further. However, an extension to Brexit and more of the same uncertainty would also be damaging to the sector.

Pound holds steady vs dollar

The pound gave up earlier gains and is heading back towards the flatline. As Prime Minister Boris Johnson meets with Irish counterpart Leo Varadkar, there is a real sense that this last chance saloon. Investors are watching closely to see if a deal can be pulled from these final talks. The fact that sterling remains above $1.20 suggests that pound investors are still optimistic that the UK will avoid a no deal Brexit. At these levels pound investors are pricing in an extension, rather than a Brexit deal or no deal Brexit.

Oil moves quietly higher

Oil was on the rise for a second straight day, putting it on track for a 1% increase across the week so far. Turkey’s military invasion in Syria plus trade deal optimism overshadowed rising crude inventories. Traders are now poised awaiting further trade headlines. Any form of a deal between the world’s largest economies could help lift demand prospects going forward. Any signs that the talks are falling apart before they really get going could see oil drop sharply lower.

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD clings to 3.5-week’s high, trades above 1.1000 figure

The pair is challenging the 1.1047 resistance. EUR/USD bull recovery from 34-month lows remains intact. Further coronavirus headlines are awaited.

EUR/USD News

GBP/USD hits new 2020 low and bounces amid Brexit rhetoric, coronavirus headlines

GBP/USD is trading above 1.2800 after hitting a new 2020, nearing the 1.2700 figure, as concerns about a no-trade-deal Brexit are weighing on the pound. Modest recovery seen in USD during the American session keeps the bearish pressure intact.

GBP/USD News

XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures