Crypto ruling, equities waiting

Frank Walbaum FX Strategies.Asia

Important news for the day

Crypto as collateral?

Jamie Dimon, the CEO of JPMorgan, is exploring ways to potentially make use of funds help in cryptocurrencies as potential collateral. This move aims to move more digital in the banking sector. Whether this will indeed be implemented and for what tokens like Bitcoin and Ethereum can be used has not been mentioned, yet. In order to use tokens to borrow FIAT money still needs to be discussed as well as ways on how to keep them should customers fail to repay debt. In general it marks a milestone as Dimon once pointed out that cryptocurrencies are a big fraud.

Market talk

After a weaker CPI reading out of New Zealand the Kiwi started to lose some momentum against other currencies. the Dollar is gearing up some steam and also the AUD is losing slightly against the Greenback. The risk sentiment in equities remains solid and positive earnings out of the US support indices like the S&P 500 and Nasdaq. yesterday, Verizon was able to push higher by about 5% as expectations have been exceeded. This week might remain positive in terms of US earnings currently supporting markets as well. The EUR seems also able to gear up steam again. The EURUSD currency pair is currently rising as the 1.1700 level might be tested soon.

Tendencies in the markets

Equities positive, USD mixed, Bitcoin positive, ETH strong, oil weaker, Silver positive, Gold positive, JPY weak.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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.