Financial Market Research and Analysis

Our analysts have their fingers on the pulse of the world's financial market news.

CFD trading is high risk and may not be suitable for everyone.
FTSE down, GBP up
The pound rallied to 1.3145 against the US dollar, as data showed the UK’s retail sales increased at a solid pace of 1.4% month-on-month in July versus the mere 0.1% that was expected.

The FTSE is struggling to avoid a short-term bearish reversal. A strong resistance is building pre-6900 level.

Energy and miners are leading gains in London on better oil and commodity prices, mostly due to a cheaper US dollar.

British American Tobacco (-0.79%), Imperial Brands (-0.36%), Legal & General (-0.90%), Mondi (+0.13%), Pearson (-1.30%), Reckitt Benckiser Group (-0.27%), Schroders(-0.73%) are among the biggest losers in the FTSE 100 in London, as they trade without entitlement to their latest dividend pay-out today.


Japan’s plunging exports and low US yields drove USDJPY below 100

The US dollar weakened across the board as the Federal Reserve (Fed) meeting minutes failed to deliver a hawkish hint regarding the outlook of the US monetary policy. In theory, September remains a live option, yet the market gives no more than a 22% chance for a rate hike to happen next month. Given the looming uncertainties at the heart of the FOMC, the odds for a Fed rate hike before the end of this year slipped below 50%.

Yen strength is once again on the headlines as Japanese exports plunged 14% on year to July. This is the tenth consecutive month of decline in Japanese exports. The stronger yen, combined to a global economic slowdown, should continue giving a headache to the Bank of Japan (BoJ). We hear rising echoes about the possibility of injecting the so-called ‘helicopter money’, although there is no official announcement in favour of such an aggressive alternative policy option.

The USDJPY tanked below the 100 level for a second session this week. As a cherry on top, the low US yields could not give a hand to stem the decline in USDJPY. A daily close below 100 dollars could encourage a deeper sell-off in the USDJPY and weigh on the JPY-crosses.

CFD trading is high risk and may not be suitable for everyone.