Sterling rallies to 7-month high, stocks edge higher

Politics, more politics and then some technical buying have helped the pound hit the highest level in seven months against both the dollar and the euro.

Politics, more politics and then some technical buying have helped the pound hit the highest level in seven months against both the dollar and the euro. 

The dollar has been under pressure for several days now as the China US trade deal seemed to be slipping through their collective fingers, the notion confirmed yesterday after President Trump said that a deal may not happen until after the US elections in November 2020. 

During the same period the pound has been strengthening based on polls showing a likely Conservative win in UK elections later this month and finally after the markets opened in London sterling broke above the key $1.3 level. This spurred some technical buying this morning which was only capped after the release of the UK services PMI data showing that the sector has stopped growing for the last three months.

FTSE moves higher as China talks hang in the balance

Financial services firms traded higher bolstered by a stronger sterling while mining and metal groups also gained ground despite the latest crisis with US-China trade talks. 

Vodafone’s big news about cooperating with Amazon Web Services on computer and storage services on its network fell on deaf ears with investors and the stock declined 0.94%. This is in sharp contrast with French network operator Orange which rolled out its new five-year strategy which included higher earnings targets and potential plans for mobile tower operations.

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 or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account