Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

FTSE Flaccid As Pound Hits Fresh Highs Against Dollar And Euro, Pre-Fed Jitters

By Spreadex (Connor Campbell)Stock MarketsJan 27, 2021 10:45
uk.investing.com/analysis/ftse-flaccid-as-pound-hits-fresh-highs-against-dollar-and-euro-prefed-jitters-200453434
FTSE Flaccid As Pound Hits Fresh Highs Against Dollar And Euro, Pre-Fed Jitters
By Spreadex (Connor Campbell)   |  Jan 27, 2021 10:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Wednesday is pretty stuffed, with the first Fed meeting of 2021, and earnings from Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Tesla Inc (NASDAQ:TSLA).

Sadly for the European markets, all of that happens after the market has closed, meaning a frustratingly mixed session might be on the cards.

Abandoning Tuesday’s growth by closing time, the FTSE drifted lower once again on Wednesday, ducking below 6,650. That means the index is now closer to where it opened January than the highs it struck in the first week of the year – and it wouldn’t take the sharpest acceleration in its losses for it to erase the remaining 160 or so points.

Alongside the hum of covid-19 lockdown anxiety that has plagued the FTSE since the third set of restrictions were put in place, the index’s biggest issue is the pound. Thanks to US stimulus speculation, GBP/USD is at its best level for close to 33-months, trading above 1.374. Against the euro, meanwhile, a 0.2% increase this Tuesday has lifted sterling to an 8 and a half month peak of €1.1304, the single currency harmed by vaccine supply troubles on the continent.

In the Eurozone, the DAX – which saw a substantial rebound on Tuesday – fell 0.4%, leaving the bourse at 13,830. This as German consumer sentiment plummeted, hitting -15.6 against the -7.8 forecast and the -7.5 see the month prior.

At present the Dow Jones is heading for a 0.3% decline after the bell, a drop that would put it below 30,900. A 4% post-market increase for Microsoft (NASDAQ:MSFT) yesterday evening – the firm saw its Azure cloud services arm see a stronger than expected 50% surge in revenue – is battling with pre-Fed jitters.

Investors will be nervously on the lookout for any signs that the central bank is going to start reducing its current support, now that the Biden administration is in power and a fat stimulus package should be coming down the pipeline.

"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."

Original Post

FTSE Flaccid As Pound Hits Fresh Highs Against Dollar And Euro, Pre-Fed Jitters
 

Related Articles

Michael Hewson
Robinhood IPO Falls Flat By Michael Hewson - Jul 30, 2021

After much anticipation in the weeks and months after filing for its IPO on March 23rd Robinhood (NASDAQ:HOOD) Markets finally started trading yesterday, pricing at $38 on its...

FTSE Flaccid As Pound Hits Fresh Highs Against Dollar And Euro, Pre-Fed Jitters

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email