Market News & Analysis
FTSE lower as corporate results show declining sales
Fiona Cincotta June 19, 2019 10:41 AM
Trading is slightly more restrained than usual ahead of the key Federal Reserve meeting which will set the tone for the rest of the day’s trading. The Fed is widely expected to keep rates unchanged but to opt for a cut at its next meeting in July. The tone of the meeting will be crucial given that the domestic US economic data has been showing more weakness of late.
Euro in focus after Draghi comments and Trump on the attack
The European Central Bank is about to change tack on interest rates and potentially re-start quantitative easing, but the move, which was resolved to prop up the region’s ailing economy, has provoked the ire of the US President. A series of Trump tweets have left investors wondering if they will be looking at currency wars this summer in addition to trade disputes.
The euro weakened against the dollar and the pound in the aftermath of Draghi’s comments but this morning the common currency has recovered all of the lost ground, trading up 0.11% against the greenback and flat against the pound.
Sterling is marginally higher against the dollar but still relatively weak at $1.2576, suspended in the lower range while the Tory party leadership contest is in full cry.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.