Miners help boost FTSE as dollar drives US strength

Joshua Mahony MSTA Scope Markets

The FTSE has suffered at the hands of a stronger pound, with the likes of the Nasdaq and S&P 500 rising thanks to a sharp drop in the dollar.

Nasdaq and S&P 500 hit fresh high
US inflation sinks the dollar
Miners help boost the FTSE

The Nasdaq and S&P 500 have hit fresh record highs today, as US indices enjoy the repercussions of another down day for the US dollar. On a day where US data was always likely to take precedence, the disappointing inflation data has certainly done little to help interest rate hike expectations, with the dollar sinking in response. With core US inflation rising by only 0.1% over the month, the case for a US rate rise isn’t necessarily boosted heavily by today’s inflation data, yet with retail sales rising sharply in September, there is reason to believe the consumer-reliant US economy will continue to grow healthily in the coming months.

Chinese trade data has, by and large, kept the FTSE afloat today, with a sharp rise in imports and exports driving the FTSE mining sector higher, with Rio Tinto, Glencore, and Anglo American the three market leaders today. With a big week ahead for Chinese data, we are likely to see the influence of the mining sector play a bigger role in FTSE fortunes.

Author

Joshua Mahony MSTA

Scope Markets

Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.

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.