Keeping up with the central banks [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

This week has been rich in terms of interest rate cuts from major central banks. The Reserve Bank of Australia (RBA) didn’t cut its rates but gave an unexpectedly dovish statement, citing that the RBA officials are turning more confident that inflation is on path toward their policy goal. The Bank of Canada (BoC) delivered a second 50bp cut in a row, following three 25bp cuts before that. Then, the Swiss National Bank (SNB) delivered a 50bp cut – it was not the base case scenario but it was not a surprise, either. The European Central Bank (ECB) also cut, but the European officials decided to go ahead with a cautious 25bp cut before Xmas, and Lagarde didn’t say much about what the ECB would do in the next meetings.

The EURUSD fell, however, but the selloff was mostly explained by a higher-than-expected US PPI print that landed just between the ECB decision and Lagarde’s press conference. As such, the dollar looks stronger this Friday than it looked last Friday.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

EUR/USD comes under pressure near 1.1700

EUR/USD is paring back part of its earlier gains, easing towards the 1.1700 area as the US Dollar stages a modest rebound. The Greenback is finding some support as markets continue to digest President Trump’s speech at the World Economic Forum in Davos.

GBP/USD looks vacillating around 1.3430

GBP/USD is alternating gains with losses midweek, pushing back towards the 1.3430 area after bottoming out near the 1.3400 support. The modest recovery in Cable comes as the US Dollar advances modestly following President Trump’s comments at the World Economic Forum.

Gold trims gains, recedes toward $4,830

Gold pushed its rally further on Wednesday, hitting a fresh all-time high near $4,900 per troy ounce earlier in the session. Risk appetite remains fragile, with investors staying cautious after President Trump delivered his speech in Davos, while EU–US tensions over the Greenland issue continue to simmer.

Crypto Today: Bitcoin, Ethereum, XRP stabilize despite weakening institutional, retail demand

Bitcoin holds below $90,000 on Wednesday, weighed down by weakening institutional and retail demand. Ethereum defends $2,900 support amid resumption of spot ETF withdrawals. XRP holds above $1.90 as US-listed spot ETFs record the second outflow since launch.

US President Trump at WEF in Davos: No nation can secure Greenland other than US

US President Donald Trump delivers a keynote speech at the World Economic Forum (WEF) held in Davos. "Certain places in Europe not recognizable any more."

Monero risks extending correction as market structure weakens

Monero (XMR) is extending its downtrend, below the $500 level at the time of writing on Wednesday, as sellers remain dominant during the American session. XMR has declined by approximately 38% from a recent high of $800, reached last Wednesday.