Investors await ECB meeting

Chris Beauchamp IG

The FTSE 100 is down 13 points in early trading, ahead of a crucial ECB meeting that should see an increase in stimulus efforts.

Markets are edging lower of an ECB meeting that is expected to deliver fresh stimulus for the struggling eurozone economy. The flow of liquidity over the past few months has been prompt and overwhelming, helping economies to weather the most perilous time in years, and for the time being it shows no sign of letting up. The actual market impact today of a fresh boost may be limited, given how widely-expected the move is, but it signals the continued willingness of central banks to act, and investors should be reassured by this. Additional support from the German and Australian governments has also provided reason for optimism, as politicians look to bolster their respective economies in the face of an uncertain future.

While the bounce has paused for breath, and eurozone stocks in particular look rather stretched after their recent run higher, equity markets remain impressively resilient in the face of a still-uncertain economic situation, where unemployment, consumer spending and industrial activity are all set to remain under pressure for the foreseeable future.

Author

Chris Beauchamp

EUR/USD off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

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.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

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.