Investors keep a close eye on Bessent testimony

Chris Beauchamp IG

European markets are moving higher this afternoon, while in Washington Scott Bessent’s testimony is commanding plenty of attention from investors, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 powers to six-week high

The FTSE 100 continues to enjoy gains, having rallied some 4% from its late-December low. European markets have enjoyed a solid day overall, partly benefiting from yesterday’s exuberant performance on Wall Street in the wake of the CPI figures. One notable underperformer on the day is JD Sports, which continues to suffer from its gloomy update earlier in the week – the recovery on Tuesday and Wednesday was only a brief respite, and the selling has resumed on disappointment with the lack of clear plan to revive the group’s fortunes.

US stocks steady as Bessent hearing begins

US indices seem content to hold on to their post-CPI gains as investors await testimony from the latest Trump nominee to face senators. Mr Bessent’s boss has certainly not shied away from making his feelings known on some of his favourite topics, but a more conciliatory tone from the likely new Treasury Secretary could smooth the path higher for Wall Street, bolstered as it is by strong earnings and indications that inflation remains contained.

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Chris Beauchamp

EUR/USD keeps its focus on 1.1800

EUR/USD is holding its ground near two-day highs around 1.1750 as Thursday’s session is drawing to a close. The pair is drawing support from a more constructive risk mood, helped by easing EU–US trade tensions and a softer US Dollar. Looking ahead, attention shifts to Friday’s flash PMI releases from both Europe and the US.

GBP/USD flirts with 1.3500 on persistent USD selling

GBP/USD is regaining momentum on Thursday and pushing up towards two-week highs around the 1.3500 mark. In the process, Cable is leaving Wednesday’s brief wobble behind and slipping back into its upward trend, helped by ongoing selling pressure on the Greenback ahead of key advanced PMI data on Friday.

Gold continues scaling new record highs, climbs above $4,950

Gold extends its record-setting rally for the fifth consecutive day on Friday, as persistent geopolitical uncertainties continue to drive safe-haven flows. Meanwhile, expectations for further policy easing by the Federal Reserve contribute to the de-dollarization trend and further underpin the non-yielding bullion, which remains on track to register gains for the third successive week and appears unaffected by extremely overbought conditions.

Bank of Japan expected to hold rates, markets seek clues on further tightening

The Bank of Japan is expected to leave its benchmark interest rate unchanged at 0.75% after concluding its two-day monetary policy meeting next Friday. The Japanese central bank hiked rates to its highest level in three decades in December, and will likely stand pat on Friday to better assess the economic consequences of previous rate hikes.

Trump walks back NATO tariffs, signals de-escalation

What began as a sharp escalation risk quickly turned into a de-escalation signal. Earlier this week, markets briefly priced in escalation risk after Donald J. Trump proposed a 10% tariff hike on eight NATO nations amid the Greenland dispute.

XRP defends $1.90 support as ETFs attract inflows despite retail caution

Ripple (XRP) is consolidating above $1.90, a short-term support level, at the time of writing on Thursday. This mild uptick marks two consecutive days of a strengthening technical outlook, following recent market-wide volatility.