Equities gain but oil prices slump further

Chris Beauchamp IG

A drift higher continues across stock markets as investors await the US inflation reading tomorrow, though oil prices have dived again, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stock markets higher as countdown to CPI begins

“US and European indices have clawed their way higher for another day, though the FTSE 100 has endured a much more muted session. Notably tech stocks have avoided too much of a dramatic reaction to news of a possible anti-trust move on Alphabet, even if the search engine titan itself is down over 1%. The clock is ticking down to tomorrow’s US inflation reading; a higher reading tomorrow would give the chances of a hold next month quite a boost, lifting the dollar too.”

Oil prices slump for a second day

“Oil bulls have been unable to drive the price higher over the past 48 hours, bereft of news from the Middle East and now beset by a hefty rise in inventory levels. A substantial Israeli response is still likely, but if it stops short of oil and nuclear installations then we can expect further selling in Brent and WTI.”

Author

Chris Beauchamp

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.