Shutdown deal hopes drive market rebound

Chris Beauchamp IG

Once more a brief selloff has been halted before it can turn into something more serious, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 at new record

Last week’s orderly selloff threatened to become much worse at times, but the theme of the last six months reasserted itself late on Friday. Since May buying momentum has appeared whenever this market rally has been in danger of tipping into a correction. Friday saw that move develop, and it was given fresh force by the signs of a shutdown deal emerging over the weekend. A year after Donald Trump’s election, it is clear that markets are still firmly in rally mode, having gotten over their April tantrum. Investors remain keen to buy the dip.

Oil prices stumble but gold surges

Oil prices joined in the bounce this morning, but that excitement has given way to renewed losses, a clear sign that oversupply concerns continue to animate traders. Meanwhile gold is at a two-week high, shrugging off the October correction. Here too there is plenty of appetite to buy the dip, reanimating the momentum driven move, though expectations of more Fed cuts provide the fundamental story.

Author

Chris Beauchamp

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.