Good news is bad news again

Chris Beauchamp IG

Equities are dropping again following more good economic news in the US, and both the dollar and oil prices are on the move higher once more, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks fall again despite government shutdown progress

“US lawmakers seem to be on course to avoid a government shutdown, but solid durable goods orders in the US have spooked investors. Good data is very much ‘bad news’ for stocks right now, as it means there is no pressure on the Fed or other central banks to think about loosening policy. September’s current swoon has been driven by the realisation that high rates are going to be a feature well into 2024, absent a recession which, as yet, refuses to appear on the horizon.”

Oil prices surge again

“The latest consolidation in oil prices seems to have run its course, with both Brent and WTI making solid gains. It makes no sense to stand in the way of oil’s rally, since there is no indication of any increases in supply from key producers, and economic data continues to support the idea of more growth.”

Author

Chris Beauchamp

EUR/USD recovers modestly, stays below 1.1900

EUR/USD gains traction and edges higher toward 1.1900 in the second half of the day on Thursday. The US Dollar struggles to benefit from the upbeat employment data following an initial positive reaction, allowing the pair to find a foothold.

GBP/USD holds above 1.3600 after UK data dump

GBP/USD clings to moderate gains above 1.3600 following the release of the UK Q4 preliminary GDP, which showed that the UK economy expanded at an annual pave of 1% in Q4. Meanwhile, the improving risk mood causes the USD to lose interest and helps the pair edge higher.

Gold retreats from February highs, holds above $5,000

Gold corrects lower after touching a fresh February-high above $5,100 but manages to hold comfortably above $5,000. The positive shift seen in risk mood limits the safe-haven precious metal's strength, while the trading action remains choppy ahead of Friday's key US inflation data.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.