Dollar down while equities and Gold rise

Chris Beauchamp IG

More US inflation data gave the dollar a shove lower and boosted gold, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

US factory-gate inflation helps support sentiment

Yesterday’s consumer price inflation failed to lift markets but the buyers are trying again in the wake of the PPI data, which has followed a similar pattern. A calmer tone also prevails after last night’s mini-panic over fears of an immediate attack on Iran by Israel, though nervousness will persist around this issue for the time being. With inflation data out of the way, earnings season wrapped up and a ‘no change’ from the Fed expected next week, investors would do well to remember the adage ‘never short a quiet market’.

Gold higher on geopolitical fears

Tariff uncertainty has taken back seat to war fears as the main driver of upside in gold. The price is testing the $3400 area again, a level that has marked the extent of upside over the past two months. Renewed USD weakness always helps of course, and since inflation still looks contained there is reason to expect further falls for the greenback ahead of next week’s likely-uneventful Fed meeting.

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Chris Beauchamp

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold flirts with daily lows near $5,000

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.