Banks boost FTSE 100

Chris Beauchamp IG

A strong showing from UK banks has helped the FTSE 100 to rise says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 bolstered by bank rally

After a miserable end to last week, the FTSE 100 has managed to rediscover some momentum, rallying 1% thanks to a strong showing from the UK banking sector. The UK government’s sale of more of its stake is another vote of confidence in NatWest, another step in the long road away from 2008’s emergency government takeover. Meanwhile the banking sector’s day was further improved by Barclays, which is still basking in the glow of Trump’s win.

US markets still strong

Friday witnessed the Dow and S&P 500 hit new highs and reach new big round numbers, but the gains have continued today. The prospect of a Republican clean sweep continues to energise investors, and with earnings growth still healthy, investors are also looking forward to a fresh burst of M&A and IPOs that will provide fresh flows to US markets. The Trump train rumbles on.

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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.