| | 01.08.2019 -
On Wednesday, FXTM market analyst Han Tan said that, although the sterling managed to bounce off the $1.212 support level against the U.S. dollar, the weakening bias for GBP/USD remains clear amid intensifying concerns over a no-deal Brexit. “With just three months remaining before the Oct. 31 Brexit deadline, the hardline stance employed by new U.K. Prime Minister Boris Johnson has done little to assuage concerns that the U.K. will avoid crashing out of the EU without a deal,” Tan said.
The original article can be viewed on Yahoo: 'No End In Sight:' Boris Johnson's Brexit Prep Breaks The Pound, No-Deal Scenario Likely
| | 31.07.2019 -
[...] South Africa still has time to avoid losing its last investment-grade credit rating, according to Lukman Otunuga, a London-based research analyst at FXTM. “With roughly three months, there is still some light at the end of the tunnel for South Africa should economic conditions stabilize” Otunuga said. While a downgrade from Moody’s could send the dollar-rand cross back to levels not seen since March 2016 -- around 16 per dollar -- the currency could strengthen to 12.50 per dollar if South Africa avoids the junk rating and the Fed continues to ease policy, he said.
The original article can be viewed on Bloomberg: Rand Has the Fed to Thank for Limiting Damage Inflicted by Eskom
Traders expect the Fed to cut interest rates by 0.25% today, with an outside chance of a 0.5% cut. Whether the central bank follows through is likely to "set the tone for policy easing out of other major central banks," said Han Tan, a market analyst at FXTM.
The original article can be viewed on Business Insider: US stocks are rising ahead of the Fed's first rate cut in a decade, even as Donald Trump fans trade-war fears
| | 30.07.2019 -
"Intensifying fears of a no-deal Brexit under Johnson's leadership are already being reflected in Sterling which is weakening against every single G10 currency today," said Lukman Otunuga, Senior Research Analyst at FXTM.
The original article can be viewed on NASDAQ: Sterling Struggles to Nurse Wounds Inflicted by No-Deal Brexit Fears
| | 29.07.2019 -
"Concerns over the United Kingdom crashing out of the European Union with no Brexit deal in place is clearly haunting investor attraction towards [the pound]," said Lukman Otunuga, a research analyst at currency broker FXTM.
The original article can be viewed on CNN Money: Brexit is becoming the nightmare business has long feared
| | 29.07.2019 -
“Both parties know they are running out of time to prevent a sharper slowdown in the global economy. However, given the past experiences, investor sentiment isn’t too high,” said Hussein Sayed, chief market strategist at FXTM.
The original article can be viewed on Reuters: Shares steady as Fed comes into focus; dollar at two-month high
| | 26.07.2019 -
“The Brexit impasse has already reared its ugly head, just days into Boris Johnson’s tenure as UK prime minister ... The deadlock appears to solidify market concerns over the prospects of a no-deal Brexit, keeping the Pound rooted around the $1.24 mark against the U.S. dollar,” said Han Tan, analyst at FXTM.
The original article can be viewed on Reuters: Sterling edges lower after EU says Brexit deal only possible one
| | 25.07.2019 -
"The dovish language employed by Mario Draghi does little to hearten global investors over the EU’s economic prospects. Germany’s dismal manufacturing PMI and business confidence data in July also pointed to stuttering growth momentum in Europe’s growth engine, which makes an economic rebound for the EU in the second half of the year increasingly unlikely," said Lukman Otunuga, Senior Research Analyst at FXTM.
The original article can be viewed on Yahoo Finance: ECB Holds Rates But Flags Rate Cut in September
| | 24.07.2019 -
"While the resumption of trade talks appears to mitigate any near-term deterioration in US-China tensions, prudent investors will not get carried away, seeing as a meaningful deal still seems a long way off," said Han Tan, market analyst at FXTM.
The original article can be viewed on NASDAQ: Trade talks keep stocks afloat, weak PMIs sink euro
| | 23.07.2019 -
A "no deal" Brexit would trigger a recession and cause the pound to nosedive, according to official forecasts. Some experts say the pound and dollar could even reach parity. "It's something that could happen over time," said Lukman Otunuga, a research analyst at currency brokerage FXTM. "It's going to be a long and painful grind all the way to October 31."
The original article can be viewed on CNN Money: Could the pound crash to $1? A 'Boris Brexit' might make it happen
Oil prices remained comfortably below their highs earlier this month, however, suggesting investors don't expect further escalation or anticipate trade disputes will temper demand, said Hussein Sayed, the chief market strategist at FXTM. "While fundamentals do support lower oil prices, investors need to carefully watch the developments in Strait of Hormuz," he wrote in a morning note. "After all, the Strait is responsible for one-fifth of the world's oil supply, and any disruption will lead to a significant spike in prices."
The original article can be viewed on Business Insider: Oil is surging as traders brace for the UK's response to Iran's seizure of a British-flagged oil tanker
| | 19.07.2019 -
“Although central banks around the world have embarked on policy-easing in a bid to support their respective economies, investors are left to ponder whether the stimulus will be enough to offset the effects from heightened U.S.-China trade tensions,” said Han Tan, market analyst at FXTM.
The original article can be viewed on Reuters: Fed rate cut bets lift stocks, dollar steadies
| | 18.07.2019 -
“While many investors don’t like gold as an asset class given that it doesn’t provide any yield, at one point it may be a necessary portfolio diversifier especially when bonds of developed economies no longer provide a reasonable return,” wrote Hussein Sayed, chief market strategist at brokerage FXTM about Dalio’s comments.
The original article can be viewed on Marketwatch: Gold settles at 6-year high, extends rally in electronic trading
Gold could “shine with intensity” this week if U.S. corporate earnings turn out disappointing and the “tired” U.S. dollar depreciates, said Lukman Otunuga, research analyst at FXTM.
The original article can be viewed on Business Insider: FXTM: Disappointing Corporate Earnings Would Support Gold
| | 15.07.2019 -
“Markets expected gold prices to push higher given that Chinese growth was the slowest in almost 30 years. However, if you look at the bigger picture, it is still above the 6% level ... Hence we’re seeing this mixed reaction with gold,” said Lukman Otunuga, research analyst at FXTM... "Gold is waiting for a fresh directional catalyst. Today is a slow start for gold, but that doesn’t mean it’s going to be a slow week,” Otunuga added.
The original article can be viewed on CNBC: Gold steadies on mixed Chinese data, higher equities curb gains
| | 15.07.2019 -
The Chinese government is likely to do whatever it takes to keep its growth rate above 6%, says Hussein Sayed, Chief Market Strategist at FXTM: "Today China reported its slowest rate of quarterly economic expansion in almost three decades. The economy grew 6.2% in Q2, in line with markets’ expectations, but 0.2% below Q1 growth. Policymakers will likely defend the 6% growth levels over the second half of 2019 by escalating stimulus measures, whether it’s in the shape of fiscal or monetary. On the bright side, industrial output grew 6.3% in June [...]."
The original article can be viewed on The Guardian: Trump claims trade war is working as China's growth hits 27-year low - business live
"[...] Risk appetite will be hit by a steeper deterioration in the global growth outlook, although such downcast sentiment could be mitigated by the prospects of incoming stimulus from major central banks," said Han Tan, market analyst at FXTM.
The original article can be viewed on Business Insider: Stocks are climbing despite Trump's latest China barbs as rate cut hopes buoy markets — the trade war is 'back in focus'
| | 12.07.2019 -
"US-China trade tensions continue to loom over global sentiment," Han Tan, market analyst at FXTM, said in a note. Chinese export growth turned negative in June, according to data released Friday, and imports plunged by more than expected.
The original article can be viewed on CNN Money: Dow 27,000; Trump vs. Libra; Daimler warning
| | 12.07.2019 -
Falling inventories and a better tone for risk sentiment via dovish central banks has been the driver of the latest rally, but as Han Tan, market analyst at FXTM, notes: “Opec’s projections for excess supply in 2020, despite its extended production cuts, are likely to keep oil prices pinned down, barring a sudden escalation in geopolitical tensions that meaningfully constrict global supplies.”
The original article can be viewed on Financial Times: Bond yields trade in yo-yo mode
| | 11.07.2019 -
"... Powell's speech on Wednesday essentially frames the July FOMC policy meeting as a decision between a 25- or 50-basis point rate cut. Whether FOMC officials will opt for the 'kitchen knife' or the 'machete' when cutting US interest rates can have a broader effect on global sentiment," said Han Tan, FXTM's market analyst.
The original article can be viewed on NASDAQ: Kitchen knife or Machete, Powell Primes Markets for July Fed Rate Cut