Rally rumbles on following US rate cut

Chris Beauchamp IG

Yesterday's Fed cut has delivered the goods for investors, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks buoyed by Fed rate cuts

The apparently unstoppable rally grinds on. Stocks held up well in the wake of last night’s rate cut and have continued to move higher. September seems likely to witness the Dow and the Nikkei 225 crossing the 46,000 threshold for the first time. While the Fed seems evenly split on what might happen next, equity markets at least have chosen to ignore this, confounding expectations of a September selloff.

Sterling sinks versus the dollar

Sterling continues to ease back from the overnight highs despite the BoE holding rates unchanged. Bearish positioning in the dollar has run its course for now, which points towards an extended period of weakness for both sterling and the euro. This should help to support UK and European stocks, which have seen investor enthusiasm cool in recent weeks.

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Chris Beauchamp

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.