CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Market Brief BoE Dovish Drags Pound Lower

Article By: ,  Financial Analyst
November 7, 2019 7:33 AM

  • At midday in London, the GBP was the weakest and AUD was the strongest.

View our guide on how to interpret the FX Dashboard

  • The Bank of England decided to keep policy unchanged on both QE and rates fronts, but the fact there were two dissenters (SAUNDERS and HASKEL) who unexpectedly voted for 0.25% rate cut, this caused the pound to wobble a little. These MPC members argued that stimulus was needed now because recent data suggests labour market is turning and they see raised downside risks from global economy. The BoE’s inflation forecasts for the next three years have all been revised lower, with prices in one years’ time now seen at 1.51% compared with 1.90% in the August estimate. The Bank has also revised its growth forecasts lower, with GDP likely to be 1% lower by the end of 2022 than its August forecasts.
  • Stocks in Europe and risk-sensitive currency pairs (USD/JPY and AUD/USD etc) all rose, while US index futures suggested we will see new record highs today. Sentiment was once again boosted by growing optimism over a US-China trade deal. This time, Reuters reported that China says it has agreed with the US to cancel existing tariffs in different phases.
  • In today’s macro news:
    • Italian Retail Sales +0.7% m/m vs. +0.3% expected
    • German Industrial Production -0.6% m/m vs. -0.3% expected
    • US unemployment claims only newsworthy data expected from North America

  • Stock highlights by colleague Ken Odeluga:
    • Sainsbury shares trade flattish though have dropped a fair amount off the day’s highs. The grocer’s adjusted profits missed forecasts.
    • Tate & Lyle surged 7% following a beat on food & beverage products.
    • Marks & Spencer bounces back hard after a weak showing on Wednesday’s poor H1 report. It rose 7% after an upgrade by SocGen showed some investors still see fair chances of a turnaround
    • Virgin Money also rose strongly, lifting a clutch of rival challenger banks in its wake as consolidation talk continues to sweep the sector
    • Qualcomm beat quarterly earnings forecasts, leading the stock to outperform overnight and ahead of Thursday's Wall Street open. The global semiconductor sector is also seeing a lift.


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024