The FTSE is trading higher led by property firms and miners helped by a slightly more optimistic sentiment in Europe ahead of the key Trump-Xi summit in Japan this weekend. Also, through some clever revision at the Office of National Statistics Britain’s economy has just gained GBP 26 billion. Though the number will do very little other than make statisticians feel better, it is a bit of positive news at a time when Britain’s economic growth is grinding to a halt.
House builders are the main gainers in London led by Berkeley Group which has attracted some speculative trading after a positive analysts’ note. Home builders are in a delicate position in that many have relatively healthy balance sheets from an extended period of rising prices but the housing market especially in and around London remains difficult and is eroding those same balance sheets with declining profits. A short term speculative buy at best, house builders could face more difficulties ahead particularly if the Bank of England really opts for further rate increases.
Cable undecided ahead of the G20 meet
Sterling traders remain very, very cautious and currency moves especially against the dollar are barely palpable. On the pound side of the equation the wait for the outcome of the Tory leadership race is preventing more serious position taking, on the dollar side the market is also in a limbo ahead of the G20 meet between the Chinese and US presidents. There could be some last minute volatility late Friday ahead of the G20 meeting on Saturday which, if it is successful, could undo weeks of hostility between China and the US.
OPEC meet around the corner, oil weaker
At this stage the outcome of the OPEC meeting in Vienna on Monday seems to be a done deal. Most of the major players have already indicated that the group plans to extend production cuts put in place in December and there has been no major dissenting voice among the oil producers. Still, Brent crude is a touch lower ahead of the meeting as the market has already factored further cuts into the price. The bigger unknown is the outcome of the tense situation in the Gulf which will prevent a more serious decline in oil prices in the short term.
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EUR/USD stays in daily range slightly below 1.0900
EUR/USD continues to move up and down in a narrow band slightly below 1.0900 in the second half of the day on Monday. The modest improvement seen in risk mood makes it difficult for the US Dollar to find demand and helps the pair stay in range.
GBP/USD treads water above 1.2900 amid risk recovery
GBP/USD is keeping its range play intact above 1.2900 in the American session on Monday. The positive shift seen in risk sentiment doesn't allow the US Dollar to gather strength and helps the pair hold its ground ahead of this week's key data releases.
Gold extends slide below $2,400
Gold stays under persistent bearish pressure after breaking below the key $2,400 level and trades at its lowest level in over a week below $2,390. In the absence of fundamental drivers, technical developments seem to be causing XAU/USD to stretch lower.
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Election volatility and tech earnings take centre stage
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The US Dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.