Stocks little changed amid cautious sentiment

Chris Beauchamp IG

Stocks traded in low volatile ranges amid little economic data on Tuesday, says Axel Rudolph, Senior Market Analyst at online trading platform IG.

Grain prices rise after Ukraine dam explosion

“Wheat prices initially rallied on news of the southern Ukrainian Kakhovka dam being blown up which led to supply worries. Neither the Russians, nor Ukrainian's have claimed responsibility.”

Surprise RBA rate hike to 11-year high

“The surprise rate hike by 25 basis-points to 4.10% by the Reserve Bank of Australia, to its highest level since April 2012, led to the fourth consecutive day of gains for the AUD/USD pair. With the central bank leaving the door open for further tightening, due to wage and inflationary pressures, the cross may advance further over the coming weeks.”

Stock markets subdued

"Despite crypto stocks falling after the US regulator SEC sued Coinbase - down 15% since Monday - for breaking US securities rules, the Nasdaq 100 and other global equity markets hardly reacted and traded in low volatility ranges."

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Chris Beauchamp

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

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: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

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.