News

Pound Struggles on Brexit Concerns

GBP

The British pound extended losses against other counterparts following the latest Brexit concerns. The final round of negotiations between the UK and the EU will start today. Telegraph reported that Boris Johnson would tell the EU leaders that the deal never made sense and would leave Northern Ireland isolated from the rest of the United Kingdom. Johnson's latest comments raised the prospects of a hard Brexit, which could weigh on the UK economy. The GBPUSD fell to a ten-day low of $1.3127, the GBPJPY declined to 139.47, and the EURGBP edged higher to 0.8996.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, added to its prior gains rising to 93.20, supported by solid recovery prospects and the weakness of European currencies. The recently released economic indicators revealed that the US economy is on track for proper recovery. Meanwhile, the British pound took a hit from the revived Brexit woes ahead of anticipated EU-UK negotiations. On the other hand, investors are looking forward to the European Central Bank monetary policy meeting later this week to check how the board will deal with the latest surge in Euro and drop in inflation, especially after the comments of the ECB Chief Economist Lane about the EURUSD.

Equities

Major US stock-index futures rebounded following a sharp sell-off late last week. The recent sharp upside rally in tech stock triggered investors' concerns about unsustainable levels of valuation, which could be after the profit-taking and the massive sell-off. On the other hand, President Donald Trump reiterated the idea of decoupling from China, stating that the US would not lose money if no longer did business with China. The Dow Jones Industrial Average futures hovered around 28300, the S&P500 futures held steady near 3435, and Nasdaq futures eased to 11469.

Metals

Gold prices continued to trade in a tight range between 1915 and 1950, awaiting fresh fundamental drivers. Meanwhile, the price of a silver ounce held steady slightly below $27, and palladium futures were flat near $2330.

Oil

Oil prices resumed decline amid woes of a significant drop in demand. Russia's Novak stated last week that he expected demand to fall by 9-10 million barrels per day in 2020. Meanwhile, Saudi Arabia promoted discounts on crude prices for the first time since June. The West Texas Intermediate crude October delivery fell to $38.65, and Brent blend November delivery dropped to $41.61.

Major Economic Events

GMT Country Event Expectation Previous

9:00

EZ

GDP (QoQ) (Q2) 

-12.1%

-12.1%

Disclaimer

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.31% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read more
Read more
Mail Call Chat Whatsapp