Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Asia morning update - Fed Powell dovishness

Muted movements are again anticipated for Asia markets with expected Fed dovishness seen and the lack of fresh leads particularly on trade. More of the same is due midweek, awaiting the data releases into the end of the week.

Source: Bloomberg

Wall Street was seen treading lightly in Tuesday’s session with the sentiment suggesting the reluctance to err on either side without further details on trade, the overshadowing factor moving markets at present. Both the Dow and the S&P 500 index concluded near neutral at -0.13% and -0.08% respectively, with the latter putting up a good fight against the 2800 resistance in the session.

US 500 Cash ($10)

Notably, we did have Federal Reserve chair Jerome Powell in his testimony affirming the patient stance towards interest rate hikes that remained supportive for markets. While emphasizing the US economy’s healthy outlook, there had again been mentions of the external headwinds including the slowdown seen in China and Europe, and uncertainty surrounding trade warranting caution from the Fed. The view towards inflation had also been one championing the expected stagnant rates to come, with the Fed chair citing inflation pressures as ‘muted’. Such a view can be seen shared by the US economy as evident in the latest reading from the latest February conference board consumer confidence report. Speaking of which, despite the rebound of the consumer confidence index to 131.4, balancing some of the gloom stemming from the recent retail sales release, the market is clearly distracted by the likes of trade.

Separately on Brexit, it is worth noting that with the latest turn in the UK, the diminishing likelihood on a no-deal Brexit can be seen opening up room for strengthening of the currency. GBP/USD touched a fresh five-month high yesterday, breaking up firmly to trade above $1.32 as the likelihood of a delay to the March 29 deadline increases. Prices had been oscillating mostly around $1.13 level of late, taking a midpoint between the post Brexit lows of around $1.12 where support came in strong and the pre-referendum $1.14 trade amid the uncertainties. With Prime Minster Theresa May’s latest offering of a delay vote, prices can be seen moving north and perhaps in an offshoot possibility that a no-Brexit happens, the $1.14 level should be where we set our eyes upon.

GBP/USD Mini

On Asia markets, expect the lacklustre trade to sustain once again evidently with the lack of novel market-moving developments in the picture. Other than Hong Kong’ Q4 GDP, it is expected to again be a quiet Asia session though with the Trump-Kim summit humming on in the background that would be more prevalent for politics. Eurozone sentiment numbers up next ahead of the final reading for durable goods, but otherwise it will be a second day watching Fed Powell’s testimony to the House.

Yesterday: S&P 500 -0.08%; DJIA -0.13%; DAX +0.31%; FTSE -0.45%


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the 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 investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.