Stocks and Bitcoin recover after inflation data

Chris Beauchamp IG

The bounce in tech names is fizzling out while the FTSE 100 surges, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks rally as US inflation slows

Today’s CPI print certainly delivered the goods for investors, but worries about the data will muddy the waters as we move into 2026. Investors are certainly keen to see data that supports the argument that the Fed will keep cutting next year, and today’s figures fit that nicely, but there is the risk that uncertainty around price trends will lean against hopes of more cuts next year. Stock have reacted enthusiastically – having had their rally spoiled yesterday because of Oracle, they seem unlikely to stop for some quibbles around inflation data.

Bitcoin edges higher

Bitcoin and other cryptocurrencies have rallied this afternoon following the inflation figures. $85,000 seems to be the floor for now, and a lot of crypto investors will go into Christmas in a much happier mood if the price can clear $90,000 over the next week.

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Chris Beauchamp

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.