Exhausted trading

Peter A Rosenstreich Swissquote Bank Ltd

Risk appetite is slightly elevated, but volumes are low, after absorbing a slew of central bank policy meetings. Yesterday, Swiss National Banks, Bank of England and Bank of Japan all held policy unchanged. USD gains marginally on lower expectations for easing and uncertainty over US-China trade talks. CHF and JPY gained on safe-haven trade as rhetoric between US, Saudi and Iran ramped up. Gold prices inched higher on the general concern over middle east developments. Interesting Asians equity markets here higher with lone exceptions of Hang Seng were protests continued to weigh on investors sentiment. Crude prices continued to moderate following the 14th Sept attack on Saudi Arabia oil infrastructure. Information flows suggest the attack was most likely a one-off and full production will have resorted relatively quickly. While the exact timing of facilities repair might vary the general view is upside in crude is limited.

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Momentous House vote cannabis banking bill

A historic full vote in the U.S. House of Representatives that might changes the US cannabis industry forever will happen later this month. House Majority Leader Steny Hoyer, a Maryland Democrat, plans to put the SAFE Banking Act to a vote before the end of September. According to CNN “The SAFE Banking Act would provide protections for banks that work with marijuana companies since the substance is still illegal under federal law, despite several states having legalized medical or recreational marijuana”. In short, this bill will allow financial institutions to service cannabis-related companies and ancillary businesses without fear of federal prosecution. In March, the House Financial Services Committee advanced the bill by a decisive 45-15 vote. The full House bill approval is expected.

Author

Peter A Rosenstreich

Swissquote Bank Ltd

Peter Rosenstreich is Swissquote Bank’s Head of Market Strategy and manages the global strategy desk; he has held various positions in several banking institutions in the United States, Europe & Asia.

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.