The FTSE 100 is five points lower in afternoon trading, while sterling drops back against the euro as Brexit concerns resurface.
It has been another day where stock markets aren’t particularly keen to go up, and those that are in the red are only seeing some modest profit-taking. Wall Street opened with small gains, as US traders continue to play the waiting game ahead of CPI data tomorrow. European markets have shown a touch more downside, with the likes of the Dax slightly skittish sitting at record highs, in case the ECB meeting does prove to be more exciting than anticipated. Still, it looks like the lack of volatility could be with us for quite some time yet, perhaps even up to the Jackson Hole meeting in late August. Notably, years like 2021 that have enjoyed strong gains for the first five months of the year don’t tend to see much summer volatility, but instead drift slightly higher until Q4, so if history is any guide 2021’s quiet nature seems set to continue.
Brexit worries are back as the UK and EU square up over northern Ireland, but while the debate has yet to reach the front pages of most UK newspapers the pound is coming under some pressure against the euro. While the discussions will lack the excitement of ‘deal or no deal’ from 2019, it is still something that could spark some volatility in an otherwise-quiet period.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.