Equity markets revive but Dollar sinks anew

Chris Beauchamp IG

Trump's latest u-turn has bolstered stocks but traders continue to flee the US dollar, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks digest the latest TACO

Stock markets have made further gains following last night’s abrupt solving of the Greenland crisis. Trump’s ability to escalate and then suddenly reverse course with no apparent hit to his reputation is remarkable, and provides opportunities for nimbler traders. Long-term investors just need the ability to shrug wearily and let the volatility run its course. Rotation continues apace in markets, as US small caps lead the way while tech lags behind, providing evidence of healthy digestion in markets.

Dollar weakness is back

While equities have rebounded, the same cannot be said of the US dollar. Despite a recovery yesterday traders continue to dump the greenback as the impact of the country’s scattergun approach to policy becomes clear. What seems a cornerstone one day is dumped the next, and that’s without considering the current war on the Federal Reserve.

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Chris Beauchamp

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.