Stock markets have made some gains, with the FTSE 100 20 points higher as the close looms.

  • Absence of weekend crises helps stocks
  • More weaker US data supports dovish argument
  • Sterling still falling as Boris holds his lead 


In such a busy week for central banks, today may be as good as it gets for equities. But the lack of major disruption over the weekend has helped risk appetite. Key flashpoints in the shape of the Hong Kong protests and the attack on tankers in the Middle East failed to develop, and the Deutsche Bank plan to create a bad bank (some might wonder what would be left of DB) has helped finance stocks to post some gains. Today’s weaker Empire State index has bolstered the case for a softer Fed outlook on Wednesday, although it will be something of a shock if the central bank does move this week; a general acknowledgement of the need to err on the side of caution is probably all investors will
 get. Those hoping for a rate cut will have to wait until later in the year, when recent weakness in some data may have morphed into something more concrete. 

Earlier strength in sterling is slipping away as further leadership polls point towards Boris reaching Number 10 in a short space of time. At this point, it is more of question of whether there will be anyone left to oppose the Blonde Bombshell – last night’s debate revealed the weaknesses of the other candidates, especially when compared to Twitter favourite Rory Stewart. Not appearing may prove to be a masterstroke by Boris – allow support to head towards the media darling, while knowing that, in a crunch, the membership itself will plump for the favourite. 

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

Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.

EUR/USD News

GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.

GBP/USD News

USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.

USD/JPY News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more

Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

Forex Majors

Cryptocurrencies

Signatures