The pound is on the slide after Theresa May agreed to leave if her deal was rejected in June. Meanwhile, the US measures aimed at hurting Huawei have done little to dent positive market sentiment.  

  • GBP tumbles, as Theresa May looks set to leave in June
  • China expected to retaliate after US targets Huawei
  • Burberry continues to struggle amid weak Asian demand 

Sterling declines have helped drive the FTSE 100 higher today, as the end of Theresa May’s leadership begins to look increasingly close. Talks between the PM and her colleagues in the 1922 committee have never been easy for May, yet her grip on the leadership appears to be slipping after she agreed to leave the role if she loses her next vote in June. For markets this is ramping up the likeliness of a hard Brexit, as pushes for a more hardline Brexiteer to take over is raising fears that we could see the UK leave the EU without a deal in October. Today’s decision will drive a wedge between those who seek a hardline Brexit and everyone else, for moderates will know that a new conservative leader could lead the country out of the EU irrespective of whether a deal is in place. 

Global markets are on the rise today, as fears over a breakdown in trade talks between the US and China took a back foot. Interestingly today’s gains have come despite the US decision to declare a state of emergency in a move that is seen to take aim at Chinese telecoms giant Huawei. While Chinese authorities are expected to retaliate, we are seeing limited repercussions, with Apple and 3M providing two of the only three losers on the Dow today. 

The Burberry turnaround plan is clearly not going to plan quite yet, as the sales growth and adjusted profits fell amid a slowdown in Asian demand. Hopes over a positive impact from a new range designed by Riccardo Tisci have been tempered for now, with the double digit rise in sales of the range having limited effect given that they only make up 10-15% of the stock on offer. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD recovery reaches critical 1.1170 price zone

The EUR/USD pair bounced from a fresh multi-year low of 1.1106, although the advance stalled in the 1.1170 region, with the pair having been unable to extend gains beyond it since last Friday. Bulls to become more courageous if the advance extends beyond 1.1200.


GBP/USD modestly up for the day after flirting with 1.2600

The GBP/USD pair is poised to close in positive ground for the first time in ten days, a result of an extremely overbought dollar and US data giving bulls a reason to take some profits out of the table. Brexit chaos persists, Pound gains unlikely.


USD/JPY trades at weekly lows near 109.70 as risk aversion dominates

The USD/JPY pair met a renewed selling pressure in the American trading hours amid intensifying flight-to-safety and touched its lowest level in a week at 109.68.


Market confidence in doldrums as PMI surveys plummet

US and German PMI surveys failed to muster any form of confidence in the growth picture, with stocks and the dollar under pressure today. The UK political picture looks bleak, with the chances of a no-deal Brexit or general election rising with May’s departure. 

Read more

Gold jumps to weekly tops and retreats, still well bid near $1280 level amid risk-off mood

Gold built on its intraday positive move and spiked to fresh weekly tops, around the $1284 region in the last hour, albeit retreated a bit thereafter.

Gold News