Weaker US data has hit the dollar and allowed US stocks to move higher, while ex-dividends have hit the FTSE 100, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks edge higher
“US markets have moved higher on hopes that the Fed will opt to leave its hiking campaign on pause for longer, after jobless claims came in weaker than expected. This week has seen signs of broadening participation in the rally, with the Dow managing to recoup some losses, though once again it the Nasdaq 100 that is leading the way while small caps are in fact losing ground. Much now hangs on what the Fed says and does next week, and will see increasingly hesitant trading in stocks as the decision nears.”
Ex-dividend stocks hold back FTSE 100
“Given the swathe of ex-dividend names today it is not surprising that the FTSE 100 continues to struggle. A recovery in the pound against the dollar has also hampered the index, putting it on the back foot against other indices that have shown signs of strength.”
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.