Spreadbetting: Room for sell-off in GBP on BOE rate cut, FTSE 100 looks puzzling - Spreadex [Video]

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In today's Spreadbetting update, we look at the outlook ahead and how Spreadex' clients remained positioned in the FTSE 100, GBP/USD, ITV, Sky, and Apple, with Connor Campbell, Financial Analyst at Spreadex, and Zak Mir, Technical Analyst at Zak's Traders Cafe.

Highlights:

"If the BOE doesn't take any substantial action next month, markets not going to take it kindly, Markets are pricing-in 90% rate cut in August."

"FTSE100 – still hanging around 6700, not exciting but impressive. Will be interesting to see if BOE rate cut would trigger another leg higher. GDP data tomorrow more of a rear view mirror."

"Cable – after Weale's comments it fell to 1.41. Pound still has room to fall if BOE produces rate cut in August. Also depends on Tone of the Fed policy and US GDP release on Friday. It will be interesting to see how much the Fed is concerned about Brexit impact."

"Earnings outlook for ITV, SKY and Apple"

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EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.