Markets have been regaining ground as we end a hugely volatile week for financial markets. While the economic slowdown shows little signs of abating, markets are at least encouraged by growing expectations of further easing from the Fed and ECB.

  • FTSE 100 gains ground despite rise in sterling
  • ECB comments highlight expectation of bumper easing package
  •  US consumer sentiment tumbles, as the ongoing trade war dents growth outlook

Global markets are on the rise as we head towards the close of yet another hugely volatile week. Despite a delayed start, the FTSE 100 has enjoyed a positive end to the week, with the index rebounding from the six-year lows seen yesterday. Those gains come despite outperformance from the pound, with markets reacting to the news that Labour’s proposals could avoid a detrimental no-deal Brexit

One of the main drivers of upside for stocks came out of the ECB, with comments from Finnish ECB member Rehn pointing towards a bumper package of stimulus at the September meeting. With markets currently pricing in a 100% chance of a rate cut from both the Fed and ECB, the question appears to be the size of such cut and whether we will see additional measures introduced at the same time. With treasury bond yields under pressure over the course of recent weeks, there is clearly sufficient anxiety to signal an impending decline in economic growth. Unfortunately, the slowdown continues to grow through the data, with US consumer sentiment tumbling into the lowest level in seven-months. That  sharp decline in consumer sentiment runs contrary to Trump’s claims over how the US benefits from this trade war, for while the US may be outperforming, that is set within a global slowdown instigated by his policies. 

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around the 34-months lows amid growth concerns

EUR/USD is trading below 1.0850, just above the lowest since April 2017. Concerns about eurozone growth are weighing on the common currency. Markets are watching coronavirus developments. 


GBP/USD shrugs off Brexit concerns and holds its ground

GBP/USD is trading around 1.3050, little-changed. The French foreign minister warned of acrimonious Brexit talks as the UK's chief negotiator is laying down a tough stance. 


Forex Today: Coronavirus fears persist, Japanese economy squeezes, cryptos climb down

China has announced it will stimulate the economy in the face of the coronavirus outbreak, including lower corporate taxes and increased spending. While most factories have returned to work, Beijing has tightened restrictions on movements in the Hubei province.

Read more

Gold slips below $1580 level amid improving risk sentiment

Gold retreats from two-week tops amid receding demand for traditional safe-haven assets. The precious metal failed to capitalize on its recent positive move to near two-week tops and edged lower during the early European session on Monday amid fading safe-haven demand.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors