Market Brief: Double Whammy for Pound
Fawad Razaqzada January 13, 2020 7:37 AM
A summary of news and snapshot of moves ahead of the US session.
- Market update at 12:20 GMT: In FX GBP was by far the weakest, with EUR and USD the strongest among the majors; stocks were off their best levels, and key commodities were lower.
View our guide on how to interpret the FX Dashboard
- GBP, already downbeat by news BoE’s Vlieghe will consider voting for a rate cut, was hit further when UK GDP came in below expectations earlier with a print of -0.3% m/m vs 0.0% expected. Manufacturing production (-1.7%) also disappointed but construction output (+1.9%) beat.
- Stocks: Risk sentiment was given a gentle boost first thing, with traders anticipating that US and China will sign the much-touted phase one trade deal on Wednesday. However, European indices turned lower by mid-morning, awaiting direction from wall Street. That said, the FTSE remained in the black thanks to those disappointing UK macro numbers weighing on the pound.
- Earnings kick off: The other significant focus will be the start of U.S. Q4 2019 earnings session. Major banks will kickstart the reporting session with Wells Fargo, Citigroup and JP Morgan all scheduled to report their results on Tuesday.
- No major data scheduled from North America, except the BOC Business Outlook Survey at 15:30 GMT.
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.