Macro Events & News

Andria Pichidi HFM

FX News Today

European Fixed Income Outlook: 10-year Bund yields moved higher at the open but already fell back slightly to currently 0.352%, while 10-year Treasury yields and 10-year JGB yields are up 0.7 bp and 0.5 bp respectively. Stock market sentiment remained upbeat in Asia and UK Futures moved higher with US Futures overnight, underpinned by a weaker Pound. Trump continues to ruffle feathers in Europe saying that he told UK PM May that her Brexit proposal could “kill” any future US trade deal, while suggesting that Boris Johnson, who stepped down as foreign secretary over May’s “soft Brexit” plans, would make a good PM. Backing then for the hard line Brexiteers in the UK who many speculate are setting out to oust May. European Stock Futures are still moving higher for now, but a hard Brexit looks increasingly likely is would hit not just the UK economy. Today’s calendar BoE’s Cunliffe, due to speak at 11:30 GMT.

FX Update: USDJPY rallied to a fresh 6-month high, of 112.77, as most Global Stock markets continued to rally, buoyed by a strong Global Economy and expectations for a solid Q2 corporate earnings reporting season. Chinese markets still underperformed, however, along with the Australian share market, on concerns about worsening Sino-US trade relations. The weakness in the Yen in turn drove an outperformance in Japanese Stock markets. Outside the case for USDJPY, the Dollar itself has been mixed. EURUSD has drifted towards 1.1650 and yesterday’s 1-week low at 1.1649, and Cable edged out a 10-day low of 1.3162, while the Dollar lost a little ground to the Australian Dollar and other Dollar bloc units.

Charts of the Day

Main Macro Events Today

MPC Member Cunliffe Speech

Prelim UoM Consumer Sentiment – Expectations – a small move up to 98.5 in early-July from 98.2 in June.

FOMC Member Bostic Speech

Fed Monetary Policy Report

Support and Resistance level

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.