A weaker close on Wall Street and protests in Hong Kong are keeping European markets under pressure this morning. The FTSE is down almost 0.4%, weighed down by a decline in British American Tobacco shares following the company’s results. Banks and insurers are also sliding while retailers and supermarket chains are providing some counterbalance.

Whatever was left of hopes that the US and China would reach a trade deal before the summer holidays was doused by the latest comments from US President Trump who said that there would be no deal unless China sticks to the promises it made in earlier negotiations.  

Sterling steady in eye of the no-deal storm

Currency traders are trying to work out what to make of what is happening with the Tory leadership contest as Boris Johnson launches a campaign promising a definite Brexit on 31 October, deal or no-deal. However, opposition is already building not only from politicians - Labour has tabled a motion to prevent a no-deal and will try and put it up for a parliamentary vote by June 25 – but also industry leaders who see a no-deal Brexit as the worst case outcome. The pound has notched marginally higher against the dollar and the euro, waiting for a clearer signal from the political front.

The dollar is struggling to hold its ground and has slipped close to a three month low, still under pressure from the possible Fed rate cuts debated at the central bank’s last session. The greenback has tracked US Treasury yields lower since a weaker-than expected job market report last Friday, which will also affect the Fed’s next debate that starts next Tuesday.

Oil slips as trade frictions persist

The protests in Hong Kong and no signs of an improvement in the Sino-US frictions are keeping oil prices under pressure. Brent crude has dropped more than 2% as it became clear that the US and China are nowhere close to reaching a trade deal. Given the current circumstances US agencies have lowered their forecast for global oil demand for this year, adding another reason for investors to look for alternative commodity investments.

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD extends its gains toward 1.1300 after the dovish Fed decision

EUR/USD has extended its gains after the Fed opened the door to cutting interest rates, stating that uncertainties have increased. Markets are awaiting EU leaders to divvy up top jobs.

EUR/USD News

GBP/USD falls after the dovish BOE statement

GBP/USD retreats below 1.2700. after the BOE downgraded Q2 forecasts, sees increasing signs of wage growth leveling off, and notes downside risks have increased. However, they remain on course to tighten policy.

GBP/USD News

USD/JPY rebounds from multi-month lows, continues to trade below 108

Fed's dovish shift continues to weigh on the greenback. 10-year US Treasury bond yield plummets to lowest level since November 2016. Wall Street looks to open sharply higher on Thursday.

USD/JPY News

FOMC: Prelude to a rate cut?

The Federal Reserve added little new to its policy prescript in Wednesday’s FOMC statement and economic projections and with the anticipation for a July rate cut long priced into market levels the reaction was decidedly uninvolved.

Read more

Gold eases from multi-year tops, still well bid near $1380 level

Gold built on the post-FOMC upsurge and rallied to near six-year tops during the Asian session on Thursday, albeit retreated a bit thereafter.

Gold News

Majors

Cryptocurrencies

Signatures