Market analysis

After hitting a new all-time high in February, the FTSE has struggled to find any sustainable support, hurt by concerns over China, UK’s struggling economy and high interest rates across the world. But we have had some positive data out of China, the UK and US this week, which may mean the worst days are behind us.

EUR/USD is ticking higher as the US dollar edges lower on progress toward peace in the Middle East...

EUR/USD’s early week rally is reversing, keeping the downward bias intact within a bearish channel...

EUR/USD must be one of the most well-behaved FX pairs in the world right now, sitting comfortably in a long-running downtrend, refusing to stray too far from the current trajectory no matter what the world is throwing at it.

The durability of the EUR/USD rebound will be put to the test over the next 48 hours as traders face a raft of events that could make-or-break the medium-term outlook for US bond yields and the USD.

EUR/USD faces a stern test in the days ahead, battling divergent fundamentals, increasing risk aversion and a technical backdrop that’s as bearish as any in the G10 FX universe right now.

The ECB delivered a relatively dovish hike whilst US data once again outperformed. And that was the perfect catalyst to send EUR/USD to a 4-low (and speculative positioning suggests there may be further downside to come). WTI crude oil rose above $90, and it appears to have more fuel in the tank to perhaps head for the October high.

If you’re of the view US yields have peaked but don’t want to get involved in bonds, taking a long EUR/USD position could be for you.

The FTSE 100 is hoping to end its longest losing streak since mid-2019 today.

The UK economy grew faster than expected in the second quarter, but that is fuelling fears that inflation could remain elevated.

After Monday’s positive close, the “risk off” trade returned Tuesday as European stocks and US futures slid. The Italian stock markets fell more than 2.5% to lead Europe lower. We saw noticeable falls for the Germany DAX and other leading indices in the region. The risk-off tone kept the dollar underpinned, which weighed down on the commodities like copper, gold and oil.

The FTSE 100 is under pressure in the wake of weak economic data out of China, as Glencore dishes out more cash to shareholders despite a tough first half.

Homebuilders are in play as UK house prices remain under pressure, buyers are circling for Haleon’s non-core assets and mining giants are following iron ore prices lower.

London-listed travel stocks are on the rise today as demand remains buoyant, although it isn’t proving enough to stop the FTSE 100 hitting fresh two-week lows.

The Bank of England is expected to increase rates for a 14th consecutive time today as the battle against inflation continues.

BP ups shareholder returns despite a sharp drop in profits, HSBC has raised its outlook and markets are digesting news that shop price inflation fell for the first time in two years in July.