- At midday in London, the GBP has gone from being the strongest yesterday to one of the weakest currencies today, although only bettered by the NZD which tumbled to a new 2019 low against the dollar today.
- GBP/USD has come sharply off overnight highs, allowing the FTSE to rebound again, after Irish Foreign Minister dashed hopes a Brexit deal was imminent. At the time of writing, the cable was testing the key 1.2500 area as support, with FTSE being near 7370-80 resistance. Irish Foreign Minister Simon Coveney said: “I think we need to be honest with people and say that we’re not close to that deal right now. But there is an intent I think by all sides to try and find a landing zone that everybody can live with here." On Thursday, the pound jumped to a 2-month high on after European Commission President Jean-Claude Juncker said a deal was possible.
- Key data from North America is Canada’s retail sales due at 13:30 BST. Headline sales are expected to have risen 0.4% month-over-month in July, while core sales are seen rising 0.2% on the month.
- Stock markets remain supported with US equity indices near record levels after a week of central bank bonanza where the message was loud and clear: global interest rates will remain at or near record lows for the foreseeable future. Indeed, the People’s Bank of China became the latest major bank to reduce interest rates overnight. The central bank cut its one-year Loan Prime Rate from 4.25 to 4.20%.
- Corporate news, courtesy to colleague Ken Odeluga:
- Brexit-sensitive shares are in focus after sterling's recent rebound appeared to get fresh legs from fresh Brexit deal optimism, albeit fairly short-lived
- Pound-sensitive FTSE 250 outperformed the FTSE 100 at the open, rising 0.4% vs. +0.1% by the benchmark index, although the latter caught up as the pound eased off its highs.
- Next has rebounded 2.6%, as one of the UK's biggest clothing retailer recoups some Thursday's drop linked to a sales warning. Europe's apparel sector benefits, with M&S, Inditex, H&M and Boohoo also firm.
- House builders advanced, led by Barratt Developments, supermarkets also got a look, triggering rallies of 1%-2% for Sainsbury's, Tesco and Morrisons though UK-focused banks benefited most. Metro and CYBG both rose more than 6% at one point.
- Thomas Cook shares dropped more than 15% to a new all-time low after it requested an extra £200m from stakeholders as the talks continues to finalise the restructuring plan to save the company.
- Rolls-Royce slumped almost 4% after the company said it expects problems with its Trent 1000 engines to take longer than expected to fix.
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.