FTSE gains as sterling is battered!

Fiona Cincotta CityIndex

FTSE gains as sterling is battered

The FTSE had a handsome rally, finishing the day 1.5% higher on the back of a weaker sterling and continued strength in US markets. US investors poured money into domestic stocks ahead of the next set of company results which are expected to show strong earnings. Economic data from the country continues to indicate strong growth both at present and in the quarters ahead. Having reached all time high levelsThursday the DJIA and S&P 500 both notched higher today but at a slightly slower pace and the Nasdaq lost some ground during the day.

PM’s Brexit comments trigger sterling sell-off

The latest comments from UK Prime Minister Theresa May left sterling markets flailing and the UK currency plunged 1.36% against the dollar before recovering marginally in the afternoon. EU leaders rejected May’s carefully crafted Brexit proposal causing concerns that Britain won’t be able to find a compromise in time for next year’s exit deadline. May said that given that the EU rejected Britain’s proposals without offering an alternative the two sides are now at an impasse in Brexit negotiations. European leaders were hoping to have a deal in place by the official EU summit in October, but now this soft deadline has been moved to mid-November when another summit is likely to be held. The battered pound traded at 1.3087 against the dollar in the afternoon and at 1.1135 against the euro, down 1.15%.

Federal Reserve expected to raise rates next week

In contrast, the greenback strengthened against most key currencies except the Australian dollar and the dollar index moved up from a two-month low as the markets positioned themselves for next week’s Federal Reserve rate setting meeting. The Fed is widely expected to raise rates by 25 basis points but what the market will be looking at very closely will be the bank’s updated policy outlook, particularly in the light of worsening trade tensions. The country’s economic indicators remain strong with jobless claims falling, housing prices holding firm and manufacturing continuing to go strong.

Oil prices rally

Having been hit by Presidential tweets Thursday about being too high, oil prices mostly made their way back Friday. Trump lashed out at oil cartel OPEC which is due to meet on Sunday to discuss production levels ahead of the November sanctions against Iran and argued that that they should increase output to balance out any price increases. Iran is already abstaining from the talks in protest but other Middle Eastern oil producers will also be in a slightly difficult situation because they will have to openly side with either the US or Iran after Trump said that the region would be unprotected if the US withdrew its military support. Trump’s anger was mostly directed at Saudi Arabia because the country’s officials recently

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Fiona Cincotta

CityIndex

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

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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

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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.