Powell hints at imminent rate cut

Dmitry Lukashov IFC Markets

Nasdaq closes at record

US stock market extended gains on Wednesday after Powell testimony confirmed Federal Reserve plans a rate cut in July. The S&P 500 rose 0.5% to 2993.07. The Dow Jones industrial average gained 0.3% to 26860.20. Nasdaq composite index advanced 0.8% to record 8202.53. The dollar strengthening reversed as Powell comments emphasized rising risks to the US economy from trade policy and slowing global growth, as well as falling price inflation. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.4% to 97.10 and is lower currently. Stock index futures point to higher market openings today

FTSE 100 slips despite above expected GDP growth

European stocks continued retreating on Wednesday. Both EUR/USD and GBP/USD turned higher with both pairs rising currently. The Stoxx Europe 600 lost 0.2% led by telecom shares. Germany’s DAX 30 fell 0.5% to 12373.41. France’s CAC 40 slid 0.1% and UK’s FTSE 100 slipped 0.1% to 7530.69 despite data showing UK economy expanded by above expected 0.3% in May after contracting 0.4% in April.

Hang Seng leads Asian indexes rebound

Asian stock indices are rising today. Nikkei rebounded 0.5% to 21643.53 with yen continuing its climb against the dollar. Chinese stocks are gaining: the Shanghai Composite Index is up 0.1% and Hong Kong’s Hang Seng Index is 0.8% higher. Australia’s All Ordinaries Index extended gains 0.4% despite Australian dollar's continuing climb against the greenback.

Brent rallies on Gulf of Mexico storm concerns

Brent futures prices jumped today as a storm built in the Gulf of Mexico. Prices rebounded yesterday after the Energy Information Administration report US crude inventories dropped by bigger than expected 9.5 million barrels last week while gasoline inventories declined by 1.5 million. September Brent crude jumped 4.4% to $67.01 a barrel on Wednesday.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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.