Pound bounces as Brexit talks improve

Fiona Cincotta CityIndex

Brexit talks over breakfast

The meeting between Boris Johnson and his Irish counterpart Leo Vardkar has ended on a surprisingly positive note with the two sides saying that they may have found a potential solution for a Brexit deal. The pound bounced late Thursday in one of the steepest one-day rises in the last five months and seems to be holding above $1.245 as EU negotiators have grabbed onto the positive momentum.

EU’s Michel Barnier and Brexit Secretary Steve Barclay are talking about possible solutions over croissants and coffee in Brussels on Friday morning raising hopes that the PM will have a Brexit deal to offer MPs by the October 19 deadline.

Although the FTSE is a touch lower, weighed down by declines in luxury brand Burberry Group and advertising firm WPP the list of gainers this morning is far more impressive as the recently battered property companies and banks lead the recovery. RBS and Lloyds have rallied 4.88% and 4.56% respectively, while Persimmon, Kingfisher and Barratt Development are following closely behind.

Oil price slide comes to abrupt stop as oil tanker explodes

The quiet stretch in the Middle East came to an end overnight as an Iranian oil tanker exploded off the coast of Saudi Arabia. While the market is still waiting for details of what actually happened Friday morning Brent crude prices are already rallying back up above $60. The temporary slide into the $58-$59 territory earlier this week caused by worsening US-China relations and concerns over future Chinese oil demand is now over.

Later in the day the CFTC’s commitment of traders report for the oil market will shed some light about how money managers repositioned themselves in this commodity during the last week particularly after recent build up in US crude oil inventories and the EIA revising its outlook for 2020 oil prices.

Author

Fiona Cincotta

CityIndex

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.