Macro Events & News

Andria Pichidi HFM

FX News Today

European Fixed Income Outlook: Asian stock markets mostly higher. Japanese markets remained close for a holiday, but elsewhere technology companies led markets higher, after yesterday’s rally in the U.S.. U.S. and UK100 futures are also higher, suggesting an improvement in Europe, after GER30 and UK100 were weighed down by strong currencies yesterday. Sterling continues to advance and the EUR remains above 1.20 against the USD which is likely to limit gains, although the EUR has started to stabilise somewhat after five days of gains. ECB’s Nowotny warned of the risk of stock price bubbles, as U.S. markets are already overheating and suggested the end of net asset purchases are in sight, thus adding to signs that the current QE program will be the last. Today’s calendar focuses on German labour market data, which is likely to show another drop in official jobless numbers.

FX Action: AUDUSD and NZDUSD came under corrective pressure during the early phase of the Asia-Pacific session before finding a footing. AUDUSD logged a low of 0.7805 in Sydney dealings after shedding just over 30 pips, putting in some space from the 10-week high logged yesterday at 0.7844. A fresh broad-based bout of U.S. dollar weakness saw the pair tick back up, to the 0.7820 mark. Data and notably events have been a scarcity today, and trading has been on the thin side with a portion of local market participants still on vacation, enjoying the post-Christmas and new year summer down under, while Japan remains closed.

Main Macro Events Today
UK Construction PMI – The construction PMI anticipated unchanged at 53.1 reading.
German Unemployment – German Dec jobless numbers are seen falling a further -12K, leaving the jobless rate at a post-unification low of 5.6%.
ISM Manufacturing PMI – The December manufacturing ISM is expected to slip to 58.0 from November’s 58.2.
FOMC Meeting Minutes

Support and Resistance Levels

Author

Andria Pichidi

HFM

Having completed her five-year-long studies in the UK, Andria Pichidi has been awarded a BSc in Mathematics and Physics from the University of Bath and a MSc degree in Mathematics, while she holds a postgraduate diploma (PGdip) in

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.