Global stock markets are seeking to build on the recovery which began yesterday as equities look to regain a surer footing after the sizable selling seen on Monday. The FTSE is little changed on the day after adding 80 points yesterday as investors await the next move after the recent additional tariffs from both the US and China have weighed on risk sentiment. The pound is little changed on balance overall, although it has dropped down close to a 3-week low against the US dollar just above the $1.29 handle as the buck has benefitted from some recent safe-haven flows.

BoE warns on Barclays charge

In a move that will likely draw criticism from many, the Bank of England has warned prosecutors that a criminal charge against Barclays could threaten the banks existence. The bailout of large banks in the wake of the 2008 financial crisis because they were “too big to fail” received widespread condemnation and these latest revelations suggest that central banks continue to believe that a safety net should be offered to lenders regardless of their business practices. Sources report that in 2017 the BoE’s top banking supervisor, Sam Woods, the director of the Serious Fraud Office, then David Green, that if charges relating to payments made to Qatar in the last crisis were brought about then it may present an existential threat. The news has had little impact on the stock price of Barclays today, with shares rising just under 1% although they remain not far from their lowest level in 3 months.        

German GDP bounces back in Q1

After escaping a technical recession in the final two quarters of 2018 by the skin of its teeth, there’s been some better news on the German economy for the start of the year with the preliminary GDP reading showing 0.4% growth. While this reading is far from stellar it does represent a significant improvement on the 0.0% print for Q4 2018 and supports the notion that the EU’s largest economy has recovered after a sticky spell. Having said that, the economy is far from out of the woods and the recent escalation in US-China tariffs could well have an impact on Germany with the country’s sizable automobile sector in the crosshairs of a protectionist Trump. The US President has an 18th May deadline to act on an investigation into the impact of car imports on national security and given his recent zeal to revive trade tensions, it would not come as too much of a surprise if Trump slapped tariffs on German carmakers in the not too distant future. The German stock market is trading a little lower on the day despite the GDP print, with the DAX 30 down by 0.2% at the time of writing.

CFD’s, Options and Forex are leveraged products which can result in losses that exceed your initial deposit. These products may not be suitable for all investors and you should seek independent advice if necessary.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD depressed around 1.1260 as recovery loses steam

The EUR/USD pair attempted to recover some ground but lost momentum around 1.1280, now near daily lows. Majors confined to tight intraday ranges amid a limited macroeconomic calendar, central banks’ pessimism. 

EUR/USD News

GBP/USD accelerates decline after losing the 1.2550 level

The Sterling is among the weakest currencies, undermined by Brexit turmoil. GBP/USD extends decline to fresh daily lows. Dollar still down against most major rivals. 

GBP/USD News

USD/JPY: unable to recoup the 108.00 level

Mixed Chinese data fell short of spooking growth concerns, Q2 GDP at 27 years low. Quiet macroeconomic start to the week in Europe and the US. USD/JPY short-term bearish as long as it remains below the 108.30 level.

USD/JPY News

Forex Today: USD attempts a comeback, China growth slows, and Bitcoin recovers

The Chinese economy grew by 6.2% y/y in Q2, the weakest expansion in 27 years. Activity data showed a dramatic improvement, Antipodeans advanced further, Asian stocks traded mixed.

Read more

Gold erases daily upside, sits comfortably above $1400

Despite a drop below the critical handle of $1400 last week, the troy ounce of the precious metal closed at $1415 but failed to push higher on Monday. As of writing, the XAU/USD pair was trading at $1410, losing nearly $5 on a daily basis.

Gold News

Majors

Cryptocurrencies

Signatures