Late news prompts GBP rally

Chris Beauchamp IG

Some late-session strength in cable is bearing down on the FTSE 100, but elsewhere equities are trying to recoup early losses.

Indices still in the red despite some recovery
Citigroup rallies after earnings
Sterling climbs as Tories locate a desire for unity

Equity markets are trading in the red this afternoon, continuing the broadly negative theme as markets struggle to find new positives to keep the latest rally in equities going into a fourth week. Earnings season is now officially underway, as Citigroup becomes the first major bank to report figures. The stock is up 2% so far today, having already rallied by over a fifth in the past three weeks, and while the update was quite mixed, there were no terrible surprises, although the weakness in trading revenue is a concern, but for now investors appear happy to write this one off as a blip. If other big firms follow suit however then the positive atmosphere may not last. Having started the day
lower, indices are trying to move into positive territory, but for this rally to last some really good news from earnings season will be needed.

This rally in sterling will either be a gift for sellers later in the week, or the start of something bigger if a no deal Brexit recedes further into the distance. The market has begun to sense that the sands are shifting in support of the deal. After the twists and turns of the past year, nothing would surprise markets, but with a Hilary Benn amendment to rule out a no-deal apparently provoking an outbreak of unity among hard-Brexit Tory MPs, it looks like the Brexit tale has a few twists left in it.

Author

Chris Beauchamp

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

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.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.