FTSE 100 and sterling both on the up

Chris Beauchamp IG

Stocks are rallying for a second day, while the pound is on the up for now following the resignation of Boris Johnson.

Commodity surge puts FTSE 100 on top

“After a tough few days for commodity prices the buyers have come storming back, and the FTSE 100 has felt the benefits of this in a big way. Oil stocks and miners have once again provided the foundation for a bounce, putting the fight back into the index after a choppy few days. To be fair the global outlook for indices seems to be brighter in the wake of yesterday’s Fed minutes, if only because everyone seems to be glad to get the issue out of the way for a while. The recent fall in commodity prices might provide some temporary relief on inflation, and perhaps earnings season will surprise on the upside when it kicks off next week.”

Pound continues to edge higher

“Sterling is revelling in what is probably its last ‘Boris bounce’, moving up against the dollar and the euro as the political crisis of the past few days subsides. The only question now is whether Labour has the strength to upset the Tory-run handover of power and force a snap election through a no confidence vote in Parliament. Even this isn’t much of a risk to the (not very bright) economic outlook, given Labour’s tame policy positions compared to 2019.”

Author

Chris Beauchamp

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.