Thu, Jan 21, 2021 @ 17:20 GMT
Home Contributors Fundamental Analysis FTSE Sinks In A Morass Of Negative News

FTSE Sinks In A Morass Of Negative News

The FTSE and other European indices are slightly lower, affected by comments from the Federal Reserve, rising tensions over Iran and no signs of a resolution to the Sino-US trade conflict. The increasing likelihood of a no-deal Brexit is also eroding some investors’ enthusiasm.

US stock fall lifts WTI prices

A decline in US domestic crude oil reserves has lifted West Texas oil prices overnight with additional support provided by brewing tensions between the US and Iran. WTI gained 2% early Wednesday having already moved nearly 9% higher last week amidst tensions in the Gulf threatening to escalate into a more serious conflict.

Fed member comments boost dollar

The dollar is a touch stronger as the currency market tries to guess and second-guess the Fed’s next move. Comments from one FOMC member saying that the expectations of a July rate cut are overdone have provided dollar bulls with a reason to buy.

However, the worsening rhetoric on Iran is causing some shift away from the dollar and into safe haven currencies.

For the moment there seems to be no light at the end of the tunnel for sterling. The more it seems that nothing can challenge Boris Johnson’s lead in the party contest the more sterling is being sold off on fears of a no-deal Brexit. The price curve is now one clean line lower, without any counter-balance to the decline.
DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Featured Analysis

Learn Forex Trading