Copper underpins FTSE 100 gains

Chris Beauchamp IG

Copper's surge put miners in the driving seat today in London, but government shutdown risk looms in the US, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 advances on copper strength

Gains in copper have given miners a boost this afternoon, which has resulted in the index making an impressive recovery off the lows of the session. European markets as a whole have had a better day thanks to a rising dollar and renewed government shutdown worries in the US. JD Sports has spent the day trying to rally but the gloomy tone of this morning’s interims are bound to leave investors disappointed.

US government shutdown risk rises

The dollar’s recovery from its September low continues as safe haven buying begins to revive ahead of next week’s possible government shutdown. Market veterans will regard the whole sorry prospect as an unnecessary drama, just with the roles reversed from the last time. Predictions of market meltdown are likely to be wide of the mark however, such events being a wearisome but seemingly-permanent feature of modern US governance.

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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.