There’s been a pretty strong move higher seen in stock markets on the continent with the Eurostoxx 50 reaching its highest level since the start of the month. After declining yesterday the markets have seemingly taken the latest political upheaval in Italy in their stride and are gaining in what is a pretty broad risk-on move. Bond yields have also risen while precious metals have pulled back with Gold dipping to the $1500/oz level once more. The FTSE 100 has added another 70 points in broad based rally, with only 4 of the benchmarks components trading lower on the day. 

 

Fed minutes in focus

The economic calendar is pretty sparse today with Canadian inflation data and US Oil inventories of interest to CAD and crude traders but unlikely to have an impact outside of this. This evening sees the release of the minutes from the last FOMC decision and this has the potential to cause some moves, given that the central bank cut rates for the first time in a decade at this meeting. The cut itself was well telegraphed but any insight into the discussion behind the decision and in particular the reasons for the 2 dissenters to vote against it are key aspects to watch. With the release coming less than 48 hours before the eagerly anticipated Jackson Hole speech from chair Powell, the markets will no doubt be keenly attuned to any hints as to what the next likely step will be from the Fed.    

 

Boris sets off on Euro trip

UK PM Boris Johnson has embarked on a trip around Europe where he will meet influential figures ahead of the G7 meeting in Biarritz this weekend. Despite the firm rebuttal of his open letter to Donald Tusk, reports of some conciliatory remarks from German chancellor Merkel has raised hopes that a way out of the current backstop quandary is possible. A swift move higher in the pound yesterday revealed just how sensitive the currency is to Brexit headlines at present and even though the move has subsequently faded, there at least seems to be the possibility of some good news in the coming days.

CFD’s, Options and Forex are leveraged products which can result in losses that exceed your initial deposit. These products may not be suitable for all investors and you should seek independent advice if necessary.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Mildly bid, but bull reversal remains elusive

EUR/USD is currently trading at 1.1078, representing marginal gains on the day amid oil price spike. The currency pair on Friday faced rejection at the resistance of the trendline connecting June 25 and Aug. 13 highs.

EUR/USD News

GBP/USD: Brexit optimism keeps bulls in the drivers’ seat

The GBP/USD pair has advanced for a second consecutive week, reaching Friday 1.2505, its highest since last July, and settling not far below this last. Fading odds for a hard-Brexit continue to underpin the Pound.

GBP/USD News

USD/JPY looking to close the bearish opening gap amid risk-off

USD/JPY gapped down to 107.44 on Monday’s open as risk appetite is diminished following the attack on Saudi Arabian oil facilities. The spot now trades near 107.80, aiming to close the bearish opening gap ahead of a big week. 

USD/JPY News

The good, the bad and the extremely ugly crypto

XRP is in a borderline situation and with little room for doubt. Bitcoin demonstrates its power and positions itself as the emerging leader. Ethereum is in an intermediate situation, far from risk but also from opportunity.

Read more

Gold prices shot higher by over 1% in risk-off start to the week

Gold prices have shot higher in the open this week due to the increased tensions in the Middle East following the attack on Saudi Arabia’s oil and gas facilities in Abqaiq which has suspended half of the kingdom’s processing.

Gold News

Forex Majors

Cryptocurrencies

Signatures