Market Brief: Stocks, Pound Rally


  • GBP has been the standout winner in what has been a day of above-normal range in nearly all pound crosses. Could we see some retracement on profit-taking during the NY session? USD has extended its falls for the second day following that poor manufacturing PMI report from yesterday.
  • UK services sector PMI was expected to ease to 51.0 from 51.4 but came in at 50.6 – not that it mattered much for the pound, which continued to squeeze the shorts after the dip to sub $1.20 proved to be short-lived yesterday as UK parament seized control of the Commons in a bid to stop no-deal Brexit. MPs will vote later today on a bill that would force Boris Johnson to ask EU for Brexit delay. If the bill passes, the PM has said will call a general election. Today’s services PMI miss means we now have a hat-trick of bad news after both manufacturing and construction PMIs fell deeper into contraction territory earlier this week. Earlier, Eurozone final services PMI was revised a tick higher to 53.5 from 53.4 thanks to upgrades for Germany and Spain. Eurozone retail sales came in -0.6% m/m as expected.
  • BOC rate decision is today’s main event from North America, at 15:00 BST.


  • Stocks have risen sharply so far in the day. Hong Kong chief executive Carrie Lam has said the controversial extradition bill has been fully withdrawn – this sent the Hang Seng sharply higher overnight, indirectly supporting the European markets and US index futures. We also had China’s services PMI come in ahead of expectations at 52.1 overnight. Along with the other markets, the UK’s FTSE 100 also rose – but less so because of the sharp rally in the pound.
  • Crude oil also found support from the positive tone towards risk assets, even if the fundamental backdrop remains somewhat bearish for the black stuff.

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.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT