Dovish Fed revives rally against USD The Federal Reserve’s (Fed) July meeting has been a big disappointment for the US dollar bulls. The Fed maintained the interest rates unchanged as expected, yet refrained from giving out more details regarding ...

LCG Market Analysis

Will the Fed announce a portfolio normalisation start date? The Federal Reserve (Fed) will deliver its policy verdict today and is expected to maintain the interest rates unchanged. Markets are fixated to details regarding the Fed’s balance sheet ...

LCG Market Analysis

USD softer on Trump investigation, Fed The US dollar is mixed at the start of the week. The deteriorating risk appetite due to political turmoil, the sliding US yields and the waning expectations for additional Federal Reserve (Fed) action before ...

LCG Market Analysis

Cable is out of puff Cable consolidates near the 1.30 level despite a softer US dollar. The UK’s encouraging retail sales data was not enough to brush away the Bank of England (BoE) doves, who gained confidence after Tuesday’s soft inflation data. ...

LCG Market Analysis

Draghi may dishearten the ECB-hawks The euro consolidates near the 1.15 level versus the US dollar before the European Central Bank (ECB) meeting and President Mario Draghi’s press conference due today. The ECB is expected to maintain the status quo ...

LCG Market Analysis

Euro traders take profit & walk away In Europe, the sovereign yield rally is cooling down. The French, Italian and Spanish 10-year yields are back to their three-month averages respectively, the German yields remain on the top of the three-month ...

LCG Market Analysis

GBP hit by softer inflation, AUD soars Cable softened below 1.3045 amid the UKs headline inflation declined to 2.6% year-on-year in June, from 2.9% printed a month earlier. The slowdown in inflation suggests that the decline in British real wages ...

LCG Market Analysis

Is Cable’s bullish reversal sustainable? Cable finally cleared the critical Fibonacci resistance at 1.3045, the major 38.2% retracement on post-Brexit sell-off, and advanced to 1.3117 in the continuation of the mid-term bullish reversal. The UK June ...

LCG Market Analysis

US inflation, retail sales and bank results on the agenda The US 10-year yield improved to 2.35% as the US producer price inflation slowed by 2.0% year-on-year in June, down from 2.4% printed a month earlier, but less than 1.9% expected by analysts. ...

LCG Market Analysis

Confusion reigns in GBP as USD softens The risk appetite is back in force after Janet Yellen hinted that the cost of borrowing could increase slower than previously thought at the first day of her semiannual testimony in front of the Congress. The ...

LCG Market Analysis

BoE hawks lose ground, Yellen in focus The US investors’ sentiment was hit by news that President Donald Trump’s son exchanged e-mails with Russians and may have a finger in his father’s victory in 2016 election. Political squeezes interfere with ...

LCG Market Analysis

GBP, FTSE buoyant into MPC members' speeches The EURUSD remains rangebound near the 1.14 level. The recent rally on yields failed to gather enough momentum to challenge the 1.15 hurdle. Call options should give support at 1.14 at today’s expiry. ...

LCG Market Analysis

Yen leads losses, pound holds ground The FTSE opened upbeat on the back of an improved demand in UK financials and firmer energy prices. The pound appetite and the energy prices will be decisive about the FTSE’s positive potential approaching the ...

LCG Market Analysis

GBP retreats on weak industrial data, NFP in focus Cable sold off amid the UK’s industrial production unexpectedly contracted by 0.1% on month to May. The weak data further dampened the mood among the British manufacturers, already distressed by the ...

LCG Market Analysis

FTSE could have a bad pound day FTSE 100 stocks opened flat. IT (-0.63%) and mining stocks (-0.33%) were among the leading losers at the open. Energy stocks (-0.01%) stayed pat. The decline in energy prices could continue if the weekly EIA data ...

LCG Market Analysis

Worldpay up 9%; EUR, GBP softer The FTSE 100 opened downbeat. The majority of sectors opened in the red despite the softening pound. Technology stocks gained past 2%, as Worldpay Group surged by 7% on news that the company has been approached for a ...

LCG Market Analysis

Pound down on strong USD, weak PMI The City of London kicked off the week full of hope on news that a delegation is on its way to Brussels to discuss a ‘secret plan’ which would give the UK financial services a free-trade access to the European ...

LCG Market Analysis

Cable trades past $1.30, USD offered The UK’s first quarter final growth data marks the last trading day of a very busy week for the pound. As expected, the UK’s gross domestic product expanded by 0.2% quarter-on-quarter, corresponding to an ...

LCG Market Analysis

Euro extends gains regardless of ‘misinterpreted’ Draghi The euro swung up and down on ECB officials’ various comments. Some ECB officials said that President Draghi’s speech has been misinterpreted by the markets. Indeed, Mario Draghi has never ...

LCG Market Analysis

Market Snapshot: GBPUSD & USDCAD setups Central bank chatter is moving FX markets. The British pound brushed off Bank of England deputy gov. Jon Cunliffe saying now is not the time to hike rates in a sign of strength. The Canadian dollar is breaking ...

LCG Market Analysis