The risk-averse outlook remains in place, as the FTSE 100 falls 100 points and US markets give up their early gains. 

After the storm comes the calm. US markets have struggled into positive territory, while Europe remains under pressure. A large drop yesterday prompted a small bounce in US indices, but this may not last and indeed the Dow is already struggling to hold in positive territory, and is firmly off the highs of the session. Markets face a tough few weeks if the US and China remain at loggerheads, and trade wars are now clearly feeding through to economic and corporate data. Good news in the form of US retail sales hardly shifts the dial, with China’s promise of retaliation carrying much more weight. European markets have suffered heavily, with the much bleaker economic outlook dispelling any  notion that equities this side of the Atlantic could play catch-up with their better performing US cousins. Further erosion of the January – April rally seems likely, now that yesterday’s slump has restored the bearish view. 

Oil prices have dropped back as the Gibraltar government releases the Grace 1 tanker despite a last-minute plea from the US government. Hopes are high that this will mean that Tehran will contemplate a reciprocal move regarding the Stena Impero, helping to defuse tensions in the Gulf. Economic concerns continue to leave oil under pressure too, as GDP forecasts are cut and central banks downgrade their growth forecasts

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 falls off the highs amid trade wars, weak German figures

EUR/USD is falling toward 1.1100. The German IFO Business Climate dropped to 94.3 points, below expectations. Markets are concerned by the intensifying US-Sino trade wars.

EUR/USD News

GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.

GBP/USD News

USD/JPY recovers farther from multi-year lows on Trump’s positive trade-related comments

The incoming positive trade-related comments dented the JPY’s safe-haven demand. Improving global risk sentiment helped the pair to recover around 150-pips intraday. Investors now look forward to the US durable goods orders data for a fresh impetus.

USD/JPY News

Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more

Gold retreats from multi-year tops, fills weekly bullish gap on positive trade headlines

Gold extended its intraday pullback from fresh multi-year tops and dropped to fresh session lows in the last hour, filling the weekly bullish gap. The US-China trade tensions escalated further.

Gold News

Majors

Cryptocurrencies

Signatures