The FTSE is barely showing signs of life this morning, which is not necessarily a negative thing given the oil-induced slide at Tuesday’s close. Resources and metals companies are all heading higher this morning, relieved that oil prices are lower, given that petrol costs constitute a high proportion of their outgoings.

The case against the government’s prorogation of Parliament being heard by the Supreme Court has also left the UK markets in suspense. With two different appeals being heard this week it is not clear when the court will come to a decision as to whether the prorogation was legal or not, or if it will overrule it. The suspended animation is putting retailers, supermarkets and house builders under pressure, keeping them all in the fallers’ category. 

Brent crude prices have retreated below the $65 mark after their spike to $72 earlier this week following the attack on Saudi Arabia’s major oil refinery. It seems that the Saudi state-owned oil company Aramco will be able to repair the damaged facility sooner than expected and manage to avoid any major loss in export flows of crude oil.   


Government pulls the brakes on Cobham takeover

The government has scotched the planned takeover of UK aerospace firm Cobham by a US private equity firm arguing that it has national security concerns. The defence technology company, which has pioneered mid-air refueling of planes, has extensive contracts with the British army.


Afternoon focus on Fed rate decision

Any words of wisdom from the Fed’s policy makers will be closely scrutinized later today in the wake of the bank’s decision to spend $53 billion to rescue the overnight lending market. The move was triggered by borrowing costs spiraling out of control, forcing the New York Fed to come to the rescue. The issue will likely overshadow the Fed’s interest rate decision later today, widely expected to be a quarter percentage point cut despite the bank’s policy makers being deeply divided over whether it is really needed or not. 

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

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.



GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.


USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.


Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Gold slumps to $1,480 area on Brexit hopes

The troy ounce of the precious metal continued to weaken in USD terms in the American trading hours as markets cheered reports claiming that the European Union (EU) and the United Kingdom (UK) are closing in on a draft Brexit deal that could be announced before the end of the day on Tuesday.

Gold News

Forex Majors