FTSE, European stocks boosted by Fed testimony

Fiona Cincotta CityIndex

Expectations of an imminent US rate cut are boosting the FTSE and other European markets this morning following yesterday's testimony to Congress by Fed chairman Jay Powell. His cautious comments about the effects of trade tensions and the strength of the global economy on economic growth in the US were interpreted almost as a full blown assurance that a rate cut would happen at the end of July.

While stocks seem to be having a field day the currency markets are a bit more cautious given that Jay Powell will continue his testimony for a second day today. His comments caused the dollar to yo-yo throughout the previous session ending with a plunge and this morning the greenback continued downhill against most majors. This is good news for the pound which otherwise had little by way of domestic news to lift it off its current lows.

In London home builders and property companies are gaining after yesterday's better-than-expected UK GDP data. Though the economy grew by the smallest of margins, the fact that it grew rather than shrank after Brexit didn't happen and Theresa May resigned, gave rise to hopes that the housing market would also perform better than expected over the next few months.

Oil stocks are only slightly higher but could attract some more volatility later in the day as oil prices are rising ahead of the first potentially major hurricane of the season in the Gulf of Mexico.

Hurricane threat and Gulf tensions lift Brent

Gulf of Mexico producers are bracing for the potential hurricane named Barry and have shuttered a third of their offshore oil production ahead of expected landfall this weekend. Brent is at $67.60 and rising as the supply situation in the Persian Gulf is also becoming more uncertain after Iranian Revolutionary Guard gunboat approached a British tanker. The move is believed to come in response to British Royal Marines stopping a tanker with Iranian oil off the coast of Gibraltar last week after which Iran vowed to reciprocate "at a suitable time and in a suitable place."

Author

Fiona Cincotta

CityIndex

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300.

Gold pushes back above $5,000

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.