Daily market commentary: The Pound is down against the U.S. dollar


Daily Market News

ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for July 16, 2019. See details below:


FOREX

The Pound is down, almost 0.4% against the U.S. dollar. Sterling weakness is justified by the increasing likelihood of a no deal Brexit. Both candidates to be the next UK Prime Minister voiced their willingness to, if necessary, break away from the EU without a deal, should there be no agreement between the two parts. At the same time, sources in Brussels alluded to increased toughness between the negotiating teams in the ongoing talks. In this scenario, there may be more downside risk ahead for the Pound.

Ricardo Evangelista – Senior Analyst, ActivTrades

EUROPEAN SHARES

European markets opened mixed on Tuesday following losses registered in Asia on low volumes overnight. The current lack of direction on stocks can be explained by both the summertime period and investors awaiting further clues on the health of the U.S. economy after China showed signs of stabilization yesterday.

The U.S. Retail Sales data due today will offer more information and is likely to have a strong impact on stocks and on the US dollar. In Europe, investors will be looking at the German ZEW Economic Sentiment which should also boost volatility and set the pace for the rest of the day. More broadly, an optimistic mood continues to support stock markets as investor rely on a few bullish leverages. Among them is the expected progress in the trade situation between the Washington and Beijing as Steven Mnuchin said he and a Robert Lightizer could soon travel to China for further talks but also recent dovish moves from central banks to be confirmed in the next few days and solid economic data from China which is seen as a stimulus to global growth. As earnings season continues, investors will keep an eye on financial results from banking giants such as Goldman Sachs and JP Morgan later today.

Pierre Veyret– Technical analyst, ActivTrades

Related News

arrow

Daily market commentary: The Pound is down against the U.S. dollar

0

Send this to a friend