Market Brief: Pound Strong Again Amidst Ongoing Brexit Drama

See a summary of the top market themes and trends from today's US trading session!

  • FX: It was another day of drama in London, including Speaker Bercow announcing his resignation, but at the end the pound was the strongest major currency (see our full breakdowns of today’s developments here and here). Safe haven currencies like the Japanese yen and Swiss franc.
  • Speaking of major currency pairs, see our analysis on EUR/USD and USD/CAD for more technical levels to watch!
  • Commodities: Gold edged about 0.5% lower on the day, while oil surged nearly 3% to a 1-month high.

  • US indices closed mixed in relatively quiet trade.
  • Energy (XLE) and Financials (XLF) were the strongest major sectors; Technology (XLK) brought up the rear.
  • Stocks on the move:
    • AT&T (T) rallied more than 1% on new that activist fund Elliott has taken a stake in the company and is pushing for a breakup.
    • Cloud software stocks like Slack (WORK, -9%), Zoom Video Communications (ZM, -8%), and Twilio (TWLO, -10%) all fell sharply as investors questioned their elevated valuations.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.

For further details see our full non-independent research disclaimer and quarterly summary.