Stocks cheer Powell speech

Chris Beauchamp IG

Jerome Powell delivered the goods for stock markets in his speech today, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks rally as Powell opens door for September cut

The whole week has been building up to today’s speech by Jerome Powell. For once, the Fed chairman may have done something to please the White House, as he signals that a September cut is now more likely. Stocks have surged in the wake of his speech, with the S&P 500 clawing back almost all the losses this week and indices in both the US and Europe firmly in positive territory. Worries about higher inflation have been cast aside for now, as investors look forward to the US economy powering ahead in the autumn.

Dollar slumps on rate cut expectations

It’s not just stocks that have been given a boost by Powell’s comments today. A slumping dollar has meant that gold is firmly back on the front foot and looks well-positioned to head back to the previous record high. All told it has been the perfect afternoon session for stock bulls and dollar bears, and now all eyes shift to Nvidia’s earnings next week.

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Chris Beauchamp

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.