European markets have been hit hard, with rising global Covid cases serving as a reminder of how mutations could derail the recovery. Meanwhile, improved jobs data has helped the pound, but comes to the detriment of the FTSE 100. 

  • Markets tumble as Covid fears dent sentiment 
  • GBP strength hurts FTSE 100 
  • UK jobs market improvements lift the pound 

European markets have been hit hard today, with rising global coronavirus cases serving as a timely reminder that the pandemic is far from over despite recent vaccination progress. Traders appear to be caught between the optimism of a gradual reopening at home and pessimism over the growth in more worrying strains around the world. Despite a rise in vaccinations throughout Europe and the US, those nations are relative outliers rather than the norm. With just 6% of the world having received a vaccine dose, the risk of further mutations remains too high to ignore. 

Risk-off sentiment seen throughout financial markets has done little to boost the US dollar, with the greenback falling into six-week low today. Instead we have seen the Japanese yen provide the basis for any risk-off momentum, with USDJPY turning lower to build on recent losses. Unfortunately, the dollar decline has helped spark a sharp rise for GBPUSD, with the highly internationalised FTSE 100 suffering as a result. A welcome decline in UK unemployment and jobless claims helped boost sentiment for the pound, but that strength does little to help bolster the weakening FTSE. Losses across the travel sector have seen the likes of IAG, FirstGroup, and Carnival lose ground. 

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


Latest Forex Analysis

Editors’ Picks

EUR/USD Price Analysis: Struggles above 1.2050 inside rising wedge

EUR/USD fades the previous day’s bounce off 1.2060-55 support confluence while easing to 1.2078 amid early Friday’s Asian session. 

EUR/USD News

GBP/USD Price Analysis: Bulls lookig for breakout to the topside

Following the progression of the price action and market structures across the various time frames in GBP/USD, it can be concluded that the bulls are now in the most favourable position.

GBP/USD News

XAU/USD respects the 10-day EMA

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. Gold Weekly Forecast: XAU/USD could target 200-day SMA

Gold News

Yearn Finance Price Forecast: YFI eyes consolidation after quick surge

Yearn Finance price tagged the channel’s upper trend line yesterday, falling just short of $100,000 and 261.8% Fibonacci extension target at $102,900. The sharp reversal from the trend line marks a significant turning point for YFI that will shift price action to consolidation from the uptrend beginning at the April 25 low. 

Read more

US markets lead the recovery as jobless claims decline

Ongoing inflation fears remain, yet improved jobless claims help lift spirits in the US. Meanwhile, UK reopening stocks have been dealt a blow after SAGE claimed that a rise in the Indian Covid strain could slow the pace of lockdown easing. 

Read more

Majors

Cryptocurrencies

Signatures