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German Election Latest: EUR/USD Muted Following Election Results

EUR/USD Analysis & News SPD Wins Majority of Votes The Greens & FDP to Decide Between Traffic Light or Jamaica Coalition Euro Sees Muted Impact After Election Sees Status Quo Maintained German Election Shows Victory for Centre-Left The results: According to preliminary results, the SPD led by Olaf Scholz won the largest share of votes with 25.7% (+5.2ppts). The main opposition, the CDU/CSU were runners up with 24.1% (-8.9ppts), marking a poor night for

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British Pound (GBP) Forecast: GBP/USD Weighing Up Different Fundamental Drivers

GBP/USD Price, Chart, and Analysis Fuel shortages across the country need to be rectified immediately. BoE and Fed speakers will help steer GBP/USD this week.   The UK government is to suspend competition laws between oil firms to help get fuel to the parts of the country suffering most from the petrol shortage. Over the weekend long lines of traffic blocked UK roads as drivers queued to buy petrol before forecourts ran out of fuel, sparking fears that the supply chai

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The Week Ahead On The Markets

The Week Ahead Read about upcoming market-moving events and plan your trading week                                                                        Week commencing 27 September

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Dividend Adjustments 27th September 2021 - 4th October 2021

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 27th September 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made. Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted

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US Dollar Outlook Bullish on Future US-China Tension

The US Dollar may catch a haven bid as US-China tensions gradually escalate amid widening disagreements on foreign policy. Political volatility may dampen risk appetite and put a premium on liquidity. Issues over trade, the South China Sea and Taiwan remain the biggest sticking points, with the latter drawing more attention following America’s pullout of Afghanistan. Sino-US tensions were expected to remain high even after former President Donald Trump left office. This is in part due to th

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GBP/USD Flattens After BOE-Induced Rally

GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt, but the hawkish tone from the Bank of England sparked some optimism into the Pound pushing GBP/USD above recent resistance at 1.3720, with Dave Ramsden and Michael Saunders, two of the Monetary Policy Committee (MPC) members, voting for an early end to the pandemic stimulus. GBP/USD Da

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US Dollar Extends Decline as US PMIs Slip

US Dollar Analysis & News Markit PMI Misses Expectations USD Back Down to Pre-FOMC Levels Markit PMI Misses Expectations US Markit Composite PMI for September fell to 54.5 from 55.4, whereby the services and manufacturing figures fell to 54.4 and 60.5 respectively, both missing analyst estimates. Supply chain issues and capacity shortages remain the key factors behind the slump, linked in part to the spread of the Delta variant. IHS Markit note that supply chain d

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Bank of England Reaction: GBP/USD Jumps on More Hawkish BoE

Bank of England Analysis and News BoE Leaves Policy Tools Unchanged as Expected Policymakers Vote 7-2 on Maintain Gilt Purchases, Ramsden Joins Saunders in Hawkish Dissent GBP Breaks Above 1.37 on More Hawkish Statement Bank of England left policy measures unchanged as expected with the Bank Rate remaining at 0.1% and gilt purchases at GBP 875bln. However, the vote split on gilt purchases saw Ramsden joining Saunders in calling for a cut to GBP 860bln. Alongside th

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FTSE 100 Price Outlook: Bank of England to Leave Advance in UK Stocks Intact

FTSE 100, BANK OF ENGLAND POLICY DECISION, NEWS AND ANALYSIS: The FTSE 100 index has been climbing for most of this week and the Bank of England’s monetary policy committee will likely consider it a job well done if London stocks and GBP are stable after its announcement today. A hawkish tilt cannot be ruled out but the Bank is more likely to focus on stability and avoiding a major market reaction.   BANK OF ENGLAND TO FOCUS ON STABILITY Torn two ways by an above

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British Pound Battles US Dollar After FOMC, Before BoE. Will GBP/USD Move Lower?

BRITISH POUND, US DOLLAR, GBP/USD, FOMC, BOE, EVERGRANDE - TALKING POINTS The British Pound was pushed to lows by the FOMC but rallied through Asia APAC equities were generally positive after Evergrande debt semi-resolution US Dollar strength tested after the Fed meeting. Will GBP/USD break-out?   The British Pound moved higher through the Asian session as the US Dollar had a mixed day in the aftermath of the FOMC meeting. The resolution of the Evergrande bond

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FOMC Event Risk: How Will the Market React?

USD, Fed Price Analysis & News Markets on Tenterhooks Ahead of Fed Meeting All Eyes on the Dot Plot Again Markets on Tenterhooks Ahead of Fed Meeting Despite some overnight excitement with the latest actions in China regarding Evergrande. FX markets have been stuck in the usual pre-FOMC lull during the London session. As the time nears for the eventual Fed taper, market participants will be keeping a close eye on whether any explicit details are mentioned in tonig

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Crude Oil Jumps as Risk Turns On Evergrande Debt Deal, FOMC Ahead. Will Prices Rally?

CRUDE OIL, EVERGRANDE, PBOC, BOJ, AUD/JPY, NZD/JPY, FOMC - TALKING POINTS Crude oil prices find support as China resolves systemic issues, for now APAC equities move higher from early lows, but end mixed on the day Risk-sensitive currencies and commodities rally. Can crude keep going? Crude oil, and the markets in general, breathed a sigh of relief as Evergrande announced it had struck a deal to pay bond holders on Thursday. The filing was not spec

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British Pound (GBP) Price Outlook: GBP/USD Stabilizing on Evergrande Relief

GBP PRICE, NEWS AND ANALYSIS: The embattled Chinese property company Evergrande’s main unit, Hengda Real Estate, has said it will make a bond interest payment Thursday after private negotiations with bondholders. That has eased fears of widespread market disruption, and boosted riskier assets such as stocks and currencies like the British Pound, despite concerns that Evergrande could still default on its debts.   GBP/USD STEADIER ON EVERGRANDE NEWS GBP/USD is ste

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Fed Taper Focus May Help Stall the S&P 500’s Collapse, Dollar’s Charge

S&P 500, Evergrande, Risk Trends, FOMC and Dollar Talking Points The week has opened to a distinct risk aversion with the S&P 500 putting in for a prominent trend reversal Risk aversion is more than just a single region or asset class sliding, and fear seems to be on the rise with plenty of fundamental fuel to keep the fire burning The power of anticipation may work to quell a meltdown as markets await the FOMC decision, but beware should fear persist despite the even

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British Pound Technical Analysis – Trends and Reversals: GBP/AUD, GBP/NZD, GBP/CAD

GBP/AUD, GBP/NZD, GBP/CAD - TALKING POINTS Since making a new high, GBP/AUD has been struggling to hold ground of late GBP/NZD consolidates after a volatility spike on the move down in late August Positive sloping trend lines are still in place for GBP/CAD. Will that continue?   GBP/AUD TECHNICAL ANALYSIS Since making a 15-month high at 1.9154, GBP/AUD has bounced off a support level at 1.8527 and consolidated within a range. Since rallying from that low,

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Evergrande Contagion Fears Take Over Market Sentiment, Global Stocks Dip

TALKING POINTS: Global equities slump as Evergrande contagion takes center stage DAX 40 and S&P 500 key levels to watch   Global stocks are trading deep in the red this morning as markets catch wind of the potential domino effect the demise of China’s real estate giant Evergrande could have. It will be the moment of truth this week as the indebted developer is scheduled to make interest payments on two bonds this Thursday after having failed to meet payments to su

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Dividend Adjustments 20th September 2021 - 27th September 2021

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 20th September 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made. Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted

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USD Price Action: US Dollar Rallies to Sept High, Focus Shifts to the Fed

US DOLLAR TALKING POINTS: The US Dollar is pushing up to a fresh September high after the release of University of Michigan Consumer Sentiment data. Next week brings the September FOMC rate decision and it’s a quarterly meeting, which means we’ll get updated projections and forecasts. The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.   The US

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British Pound Slips After Data, Still Tied to Range. Can GBP/USD Break Out Ahead of FOMC?

BRITISH POUND, GBP/USD, US DOLLAR, ENERGY, COMMODITIES - TALKING POINTS The British Pound weakened after data but managed to hold some levels Energy commodities calmed down today, as did most asset classes in Asia With FOMC next week, is this a quiet before the price wrecking storm?   The Great British Pound moved lower after US and domestic data today. Energy commodities took a breather in the Asian session, as did most equity, bond and currency markets.

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