April ends on a lower note

Chris Beauchamp IG

Markets are under pressure once again, with the FTSE 100 30 points lower heading into the close.

Stocks falter at the end of April
Morrisons bounces on bid talk
Busy week ahead

The week is ending on a cautious note, as US and UK GDP growth both disappoint. What started off so well for stock markets has turned into a week of mixed fortunes, despite further evidence from earnings season that US firms are doing well. The impending end of Trump’s first 100 days offers investors a very mixed scorecard. Stocks are up, but the dollar is barely flat, while the legislative programme has not even got started. Q1 was the quarter of hope and expectation, but Q2 could be when the disappointment begins to set in. It wouldn’t be a Fridayafternoon without an outlandish rumour, and the 2% bounce in Morrisons provides that in spades. Ostensibly Amazon is going to buy up the
northern supermarket. This seems like an unnecessary amount of effort for Amazon, which has crushed far larger US firms and looks set to remake the UK grocery market with Amazon fresh.

A new month begins next week, with an action-packed week including non-farm payrolls, a Fed meeting, PMI numbers and plenty of earnings reports. Strength in gold and USDJPY as the day winds down suggests that risk off sentiment is building in markets, something that should only increase as the final round of the French presidential election nears.

Author

Chris Beauchamp

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.