Joshua Mahony MSTA
Scope Markets
The FTSE 100 is failing to take advantage of the weakness seen in GBPUSD, with the dollar surging higher across the board. Nevertheless, with the Brexit tone softening from the EU, it is likely we will see more sterling strength to come.
- Markets ease back as we close out the week
- Central bank easing fails to ignite stock markets
- Brexit optimism on the rise amid improving tone from EU
The FTSE 100 is erasing its morning gains as we head into the close, with the recent bout of market uncertainty continuing to dominate. In a week where central banks have been the main focus, it seems markets are somewhat confused as to whether to celebrate the recent easing or instead worry that it may not last long enough. The Fed’s role in driving sentiment has not been limited to their rate decision, with daily Repo auctions raising fears that this liquidity crunch may be more than just a short-term bottleneck.
Dollar strength has dominated the FX space over the course of the day, with the greenback gaining ground across the board. Interestingly, this dollar rally has masked much of the Brexit optimism that has been growing over the course of the day. Talk of gradual progress has also been accompanied by plenty of commentary of a determination to get a deal done by the October deadline. While the UK and EU clearly remain some way from an ultimate resolution, there is a growing feeling that the EU would be willing to drop the controversial backstop. The question is whether there is enough time to provide border solutions that can convince each EU member (not least the Irish).
This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regards to past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.