Image Image Image Image Image Image Image Image Image Image
Scroll to top

Top

Daily Market Review – 5/07/16

The Caixin Services PMI reading from China came in slightly better than expected. Germany and France will release their Services PMI numbers today, along with the U.K. later this morning. The U.S. returns from their holiday and they will bring forth Factory Orders numbers. However, the critical moment today could come when BoE Governor Matt Carney speaks in London this morning.

The EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More and GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More have both traded slightly weaker the past twelve hours. Indices have come under early pressure in Asia too. It appears that risk appetite may be decreasing as traders begin to brace themselves for what is perceived as uncertain days ahead. Gold continues to trade slightly higher under these storm clouds.

Crude Oil has led the broad commodities sector down. Sentiment about economic activity and its outlook is not particularly good. Demand for Crude Oil may continue to be under question and the inability of Brent Crude and WTI Refers to West Texas Intermediate Refers to West Texas Intermediate Refers to West Texas Intermediate which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More to sustain their moves upwards may be causing speculators to look at downside potential.

BoE Mark Carney will be speaking today in London about Financial Stability. Obviously questions about the Brexit ramifications persist. Carney is in a precarious position because he may be seen as an outsider by some U.K. politicians. Carney is a Canadian and it is likely that he viewed his job under the context as a key component of the European Union. Is his job in peril?

Last week Carney issued a proclamation about the potential need for the BoE to cut its interest rate. However, he may run into resistance When investors and traders use the term resistance When investors and traders use the term resistance When investors and traders use the term resistance, or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More regarding this idea. The GBP remains the key FX data point for traders. Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More could be both a barometer and lynchpin in the market as traders gauge international market strategy based on the interplay of the GBP with other major currencies.

Having shown the ability to create stability last week after the tumultuous Brexit trading immediately after the vote, the GBP nevertheless was not able to put in any significant gains. While the FTSE did find takers and finished the week positive, it is possible that a lot of the equity buying came from international investors looking for good values. Today may prove to be a volatile day of trading, volumes will be returning to normal and investors may have a lot of concerns that they express with selling.

GBP/USD chart this morning approximately 7:20 GMT, 5 July 2016

GBP/ USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More chart this morning approximately 7:20 GMT, 5 July 2016