The FTSE 100 is on the back foot despite early gains, with hopes of an economic rebound being dented by ongoing fears of a second surge in Covid-19 cases. easyJet has moved to drastically cut costs, highlighting the difficulties many airlines will be having as air travel remains depressed. Gold has surged into fresh seven-year high as traders look for non-fiat assets.     

  • FTSE 100 stumbles, despite signs of wider economic improvement 
  • easyJet cost cutting highlights pressure despite expected surge in July travel 
  • Gold hits fresh seven-year high 

Early FTSE 100 gains have floundered once again, as the selling pressure comes back into play despite intermittent periods of optimism. The recent infatuation on US Coronavirus cases growth appears to have lessened somewhat since the actions taken throughout Florida and Texas to mitigate the spread of the virus. While further regional lockdowns appear likely, there is a feeling that such localised action will slow but not stop the global economic recovery. In a week packed full of economic data, the Chinese economic recovery provides a framework for European nations to follow. In particular, the outperformance in Chinese manufacturing seen in June provides hope for a service-led economy such as the UK, with lockdowns providing huge suffering in the sector throughout recent months.  

easyJet shares may be little changed today, but it has been anything but an ordinary day for the travel company. Cost-cutting measures announced by the firm could see 727 pilot redundancies and an exit from their Stansted, Southend and Newcastle locations. With many expecting to see a surge in European travel in July, today’s news highlights the fact that air travel will likely remain hugely depressed by historical standards. While efforts to streamline the balance sheet have typically been treated with optimism throughout this crisis, today’s announcement failed to bolster sentiment given how dramatic their actions are perceived to be. While investors have largely seen this crisis as a temporary hurdle to navigate, the long-term implications of today’s announcement highlights the fact that many airlines will have a considerably smaller footprint for years to come.  

Gold has hit a fresh seven-year high today, as traders attempt to commit their funds to assets which help them avoid the likely bumps in the road that lie ahead. Looking back at our post-2007 experience, gold has shown itself to be a major outperformer at times of crisis and monetary expansion. With governments and central banks alike pushing the throttle to the max, it comes as no surprise to see many jump for cover in non-fiat assets such as gold.  

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex Majors