Sterling traders seek new indicators as Westminster goes quiet
Fiona Cincotta September 11, 2019 4:26 AM
Parliament may now be closed but it is proving to be an interesting week for the pound.
Parliament may now be closed but it is proving to be an interesting week for the pound. We saw some violent price action yesterday, with the pound initially rising on the back of some very positive UK jobs data and wage growth figures. This saw it hit 1.238 vs USD at one stage before it was sold down again to under 1.231, likely on profit taking from large actors in the market.
Later in the day we saw a second rally and overnight some violent moves, between the 1.234 and 1.2369 level.
On paper the jobs data looks good for the UK economy. With the news flow out of Westminster toned down, some investors are reverting back to economics. There are also indications that the government is creeping closer to an agreement with the EU on the Northern Ireland backstop.
Ocado leads FTSE up in early trading
The FTSE opened up this morning and we are seeing buying in several big names, with no bias towards sector. Ocado, JD Sports, NMC Healthcare and Legal and General lead a pack of stocks which are up over 2% this morning.
Asian markets cautiously optimistic ahead of ECB meeting
Asian markets were cautiously up overnight but there now seems to be plenty of focus on the ECB meeting tomorrow, where the bank is expected to take Euro rates deeper into negative territory. There was also some positive sentiment out of China where the government has decided to suspend tariffs on 16 types of US exports, which is widely being seen as a conciliatory move ahead of renewed talks.
Bolton sacking sees oil at new level
In the US the big overnight news was the sacking of National Security Advisor John Bolton. This was immediately seen as a potential defusing of tensions with Iran. Oil dropped suddenly from 63.79 (Brent) to under 62.20 in a very short period of time. The reaction was possibly too extreme, as oil has been climbing slowly back overnight and is now at 62.90.
Please note these products may not be available to trade in all regions.
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.