Market News & Analysis
Market Brief: Double Whammy for Pound
Fawad Razaqzada January 13, 2020 8:37 PM
- Market update at 12:20 GMT: In FX GBP was by far the weakest, with EUR and USD the strongest among the majors; stocks were off their best levels, and key commodities were lower.
View our guide on how to interpret the FX Dashboard
- GBP, already downbeat by news BoE’s Vlieghe will consider voting for a rate cut, was hit further when UK GDP came in below expectations earlier with a print of -0.3% m/m vs 0.0% expected. Manufacturing production (-1.7%) also disappointed but construction output (+1.9%) beat.
- Stocks: Risk sentiment was given a gentle boost first thing, with traders anticipating that US and China will sign the much-touted phase one trade deal on Wednesday. However, European indices turned lower by mid-morning, awaiting direction from wall Street. That said, the FTSE remained in the black thanks to those disappointing UK macro numbers weighing on the pound.
- Earnings kick off: The other significant focus will be the start of U.S. Q4 2019 earnings session. Major banks will kickstart the reporting session with Wells Fargo, Citigroup and JP Morgan all scheduled to report their results on Tuesday.
- No major data scheduled from North America, except the BOC Business Outlook Survey at 15:30 GMT.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.