Market Brief: Double Whammy for Pound
Fawad Razaqzada January 13, 2020 12:37 PM
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: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.