Market News & Analysis

Top Story

UK constitutional crisis hits sterling

The decision by the government to prorogue parliament in a bid to reduce the amount of time MPs will have to cook up legislation that could delay a hard Brexit is dominating headlines. The British government is banking on the threat of a hard Brexit to bring the EU back to the negotiating table.

Traders are very focused on the GBP, which saw another sell off yesterday amid heightened volatility on the currency. The options market is showing that there are expectations for some big swings in the currency over the coming weeks.

Beyond the currency markets, miners were leading the FTSE 100 this morning, with Fresnillo up more than 2% in early trading and Glencore not far behind. The main UK index was up just over 60 points in early trading. Micro Focus shares saw some major selling as it again had to review its revenue forecasts.

Treasury yields trump trade talks in Asia and US markets

Overnight trade in Asian markets was slow. US energy shares rose on Wednesday, pulling markets in North America up, but traders in Asia are still very focused on the tit for tat trade rhetoric that is going on between the US and China.

Big questions remain over the health of the US economy going into today’s trading session with the 30 year Treasury now trading at an historic low yield. This is seen by many analysts as an indicator of a slowdown in the US economy or even a recession.


Please note these products may not be available to trade in all regions.

Join our live webinars for the latest analysis and trading ideas. Register now

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.

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