Daily Market Analysis

European Open Preview – Trump’s trade tweet boosts confidence in the last day of the year

Posted on December 31, 2018 at 9:29 am GMT

Trade optimism supports stocks, but dollar not so excited Italy approves revised 2019 budget plan Oil set for negative close after three years Trump’s trade phonecall lifts market sentiment in the last day of the year Investors will have their last full trading day on New Year’s Eve Monday before closing their books for 2018 and futures tracking US stock indices such as the S&P 500 and Dow Jones are flashing green, pointing to a positive open thanks to optimistic trade tweets by the [..]

European Open Preview – Dollar sags but equities stage comeback

Posted on December 28, 2018 at 9:07 am GMT

US equities stage a major comeback late in the session, close higher Dollar edges lower as Fed rate-hike expectations are almost fully priced out Yen shines, loonie and aussie flirt with lows amid broader risk-off mood US stocks stage an impressive late comeback, but skepticism lingers It was another session characterized by sharp moves in both the currency and equity markets on Thursday amid thinner-than-usual liquidity, and with little in the way of fresh news to drive the price action. [..]

European Open Preview – Stock carnage deepens; yen extends gains

Posted on December 24, 2018 at 8:58 am GMT

US stock indices extend losses, Nasdaq enters bear market as concerns around future growth feed risk aversion Dollar and yen outperform on safe-haven demand, but are giving back some gains on Monday amid encouraging trade headlines Equities drop to fresh lows as uncertainty reigns US stock indices closed with sharp losses once again on Friday, in an environment characterized by thin liquidity, as investors attempted to protect their profitability heading into the New Year via liquidating more of their prior [..]

European Open Preview – Stocks sink alongside dollar as market havoc continues

Posted on December 21, 2018 at 9:16 am GMT

US stocks extend plunge as investors remain jittery of a Fed policy error, US government shutdown, and US-China tensions Yen outperforms as uncertainty deepens, while dollar continues to bleed BoE remains on hold, points to intensifying Brexit uncertainties S&P 500 closes at September 2017 lows There was no reprieve for US stock markets, which extended their losses as the dust following the latest Fed meeting settled. The benchmark S&P 500 (-1.58%) closed at its lowest level since September 2017, with [..]

European Open Preview – Dollar shows weakness despite not-so-dovish FOMC meeting

Posted on December 20, 2018 at 9:20 am GMT

Fed’s dot plot indicates two rates hike next year, down from three Bank of England to hold rates steady amid Brexit drama EU and Italy find common ground on budget plan Fed not as dovish as expected Shares in the US and Asia tumbled after the Federal Open Market Committee (FOMC) raised interest rates by a quarter point to 2.25-2.5% in a widely expected decision and hinted further tightening next year despite the hazards in global economic conditions. The central bank [..]

European Open Preview – Fed unlikely to be as dovish as market pricing implies

Posted on December 19, 2018 at 8:42 am GMT

The spotlight today is on the Fed’s decision; markets seem positioned for an extremely “dovish hike”, which poses an upside risk for the dollar The BoJ will also meet, though that gathering may be less exciting Meanwhile, oil prices resumed their broader collapse Fed may strike a less dovish tone than investors anticipate The main event today will be the Fed’s policy decision at 1900 GMT, which will be followed by a press conference from Chair Powell. A quarter-point rate increase [..]

European Open Preview – Dollar softer on bets volatility will stay Fed’s hand

Posted on December 18, 2018 at 8:48 am GMT

Risk sentiment in dire straits; US stocks close at fresh lows, yen shines Dollar drops as Fed rate-hike expectations fade even further Kiwi buoyant after New Zealand’s business sentiment recovers S&P 500 closes at 14-month low as fear dominates greed Risk sentiment remained sour to start the week, in the absence of any clear catalyst, other than a flurry of headlines suggesting a US government shutdown may be on the cards this holiday season. The benchmark S&P 500 index fell [..]

European Open Preview – US dollar index near highs as Fed week begins

Posted on December 17, 2018 at 8:14 am GMT

US dollar not far from highs as Fed poised to hike later in the week Risk sentiment under pressure from signs of global slowdown Volatile sterling in wait-and-see mode on possible Brexit holiday pause US dollar keeps most of its gains on robust retail sales The US dollar was helped by a buoyant November retail sales report on Friday, which were in contrast to weaker-than-expected data and business surveys out of Europe and China. A strong consumer should help the [..]

European Open Preview – Euro softens as ECB ends QE, but turns cautious

Posted on December 14, 2018 at 8:50 am GMT

Euro ticks down as ECB ends QE, but downgrades balance of risks Aussie and kiwi fall sharply after key Chinese data disappoint EU refuses to renegotiate Brexit deal; sterling rallies may remain short-lived US retail sales data due out today Euro inches lower despite Draghi trying his best not to seem dovish The European Central Bank (ECB) officially announced the end of its crisis-era QE program yesterday, as expected. The Bank revised down its growth and inflation forecasts, though that [..]

European Open Preview – Pound advances as May survives; ECB meeting eyed

Posted on December 13, 2018 at 8:39 am GMT

Sterling advances as PM May survives leadership contest, but sustained rally unlikely ECB meets today; Draghi’s tone will be crucial for the euro SNB meets as well, likely to maintain a dovish stance Meanwhile, reports China may open its economy boost risk sentiment Pound soars as May survives, but odds of a sustained rally slim Sterling surged on Wednesday, as it became increasingly clear throughout the session that PM May would survive the no-confidence motion, amid a plethora of Tory [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. 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. The research and analysis does not involve any 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 research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.