FTSE boosted by Fed testimony
Fiona Cincotta July 11, 2019 10:04 AM
The FTSE has some new-found optimism this morning after yesterday’s Fed Chair Jay Powell’s testimony to Congress.
The FTSE has some new-found optimism this morning after yesterday’s Fed Chair Jay Powell’s testimony to Congress. His cautious comments about the effects of trade tensions and the strength of the global economy on economic growth in the US were interpreted almost as a full blown assurance that a rate cut would happen at the end of July.
While stocks seem to be having a field day the currency markets are a bit more cautious given that Powell will continue his testimony later today. His comments caused the dollar to yo-yo throughout the previous session ending with a plunge and this morning the greenback continued downhill against most majors. This is good news for the pound which otherwise had little by way of domestic news to lift it off its current lows.
In London home builders and property companies are gaining after yesterday’s better-than-expected UK GDP data. Though the economy grew by the smallest of margins, the fact that it grew rather than shrank after Brexit didn’t happen and Theresa May resigned, gave rise to hopes that the housing market would also perform better over the coming months.
Gulf of Mexico producers are bracing for the potential hurricane named Barry and have evacuated a number of oil rigs ahead of expected landfall this weekend. Brent is at $67.60 and rising as the supply situation in the Persian Gulf is also becoming more uncertain after an Iranian Revolutionary Guard gunboat approached a British tanker.
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.