We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The USD may rise if the FOMC re-affirms its data-dependent approach and cools 2020 rate cut bets. US retail sales and CPI data may also give the Fed impetus to hold rates. Get your $USD market update from @ZabelinDimitri here: https://t.co/XnDITaDOox https://t.co/A480uVMqF2
  • What tools does the ECB have left to stimulate the Eurozone? Where is the #Euro heading? Find out from Chief Eurozone Economist at Pantheon Macroeconomics Claus Vistesen only on Trading Global Markets Decoded #podcast hosted by @MartinSEssex here:https://t.co/Twr44cZ1GB https://t.co/DXlDH5Cp9e
  • The price of oil extends the advance from the October low as #OPEC and its allies pledge to take additional steps to balance the energy market. Get your crude #oil market update from @DavidJSong here: https://t.co/llGq8yPFH4 #OOTT https://t.co/1OCVOIrK98
  • Gold closed lower after paring early-week gains post-NFP on Friday. But will price finally break support? These are levels that matter on the XAU/USD weekly chart. Get your gold technical analysis from @MBForex here: https://t.co/ovGheRg4MQ https://t.co/ZEQSYktj0w
  • What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/l6FvtcADEH
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/dnrAMFK4U2
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/RMk5Eb5fLU
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/KdpSjQSJ8F
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/INdFtsrTTF
  • What is the top market moving theme for the coming week? I disagree with the majority. '$EURUSD, $GBPUSD and $AUDUSD Top Volatility Candidates With #Fed, #Election, #TradeWar' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/07/EURUSD-GBPUSD-and-AUDUSD-Top-Volatility-Candidates-On-Fed-Election-Trade-War.html?CHID=9&QPID=917719 https://t.co/Q1dbZVN5Us
FTSE 100 Looks to Crucial Brexit Vote, S&P 500 Backs Off Resistance

FTSE 100 Looks to Crucial Brexit Vote, S&P 500 Backs Off Resistance

2019-01-11 16:00:00
Justin McQueen, Analyst
Share:

Equity Analysis and News

  • Key Vote Likely to Go Against Theresa May
  • Dovish Fed Buoy Equity Markets

Key Vote Likely to Go Against Theresa May

Last month, Theresa May postponed the vote on her Brexit deal from mid-December to January 15th to get assurances on the Irish border backstop from the EU. However, failure to gain assurances, the chances of PM May’s passing her deal through parliament is somewhat slim. As a reminder, Theresa May survived a no-confidence vote, although, over 100MPs voted against her. Alongside this, a 1/3 of MPs from her own party have been vocal in their opposition to the deal. That said, as it stands, PM May could be set for a large defeat on Tuesday.

FTSE 100 Price Chart: Daily Time Frame (Apr 2018 – Jan 2019)

FTSE 100 Looks to Crucial Brexit Vote, S&P 500 Backs Off Resistance

The FTSE 100 eyes resistance at the 38.2% Fibonacci retracement (2016 low to 2018 high) at 6984, while the descending trendline at 7000 could also curb further advances in the index. As such, a closing break above the trendline would be needed in order to ease the bearish trend. However, failure for a topside breakout could see support a 6840 retested.

Dovish Fed Buoy Equity Markets

The Federal Reserve are continuing to show signs of flexibility when discussing further rate moves, suggesting that it could be prudent to wait patiently before the Fed acts. Consequently, this dovish shift has provided support for risk assets. Next week will see another raft of Fed speakers, however, given the recent rhetoric, markets now have the general view of the new direction from the Fed. Patience!

Recent Fed Commentary

Jerome Powell

Chair

The Fed has ability to be patient and flexible on rates (Jan 19)

Richard Clarida

Vice Chair

Fed can be patient in assessing how to adjust policy as data evolves this year (Jan 19)

Raphael Bostic

Non-Voter

Policy could move into either direction and he is open to a rate cut if downside risks all come to bear (Jan 19)

Eric Rosengren

Voter

Possible that the Fed will need to lower rates, but not in his view (Jan 19)

Notable Federal Reserve Commentary through Jan 7-11th.

S&P 500 Price Chart: Daily Time Frame (Aug 2018 – 2018)

FTSE 100 Looks to Crucial Brexit Vote, S&P 500 Backs Off Resistance

Recent gains look exhausted as the S&P 500 pushes hovers around resistance at 2600-30. Potential for a pullback which could see the index retest 2520, in which a closing break below, opens up room for a move towards 2400.

RECOMMENDED READING

RESOURCES FOR FOREX & CFD TRADERS

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.