FTSE rallies on Fed's signals
Fiona Cincotta June 20, 2019 5:00 AM
The Fed’s decision to keep interest rates unchanged and comments suggesting that rates cuts are not as imminent as the market has expected have helped the FTSE and European markets into a much stronger position Thursday.
The Fed’s decision to keep interest rates unchanged and comments suggesting that rates cuts are not as imminent as the market has expected have helped the FTSE and European markets into a much stronger position Thursday. The DAX gained close to 0.9% helped also by a rally in Asia while the FTSE made a more modest gain of 0.30% led by miners, industrials and airlines.
Dollar in decline as Trump ponders Powell’s removal
The dollar had already started sliding after the Fed’s rate decision Wednesday but reports that President Trump is considering removing Fed chairman Jay Powell have put the greenback under yet more pressure. This has worked in favour of the pound which has been on the back foot for weeks, helping sterling rally back above $1.27.
The BoE session today is also playing a role in the pound’s recovery as the central bank is expected to hold rates steady but reinforce its message that it will raise them later this year. Although the UK economy has practically ground to a halt the argument for higher rates is supported by a very fast growth in wages.
Brent crude is trading back above $63 ahead of OPEC’s meeting in Vienna at the beginning of July. Member countries are working towards extending the oil output cuts that are currently in place despite signs that the US market is well stocked.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.