Stocks remain on the back foot

Chris Beauchamp IG

Rising oil prices and yields exert downward pressure on stocks ahead of FOMC, says Axel Rudolph, Senior Market Analyst at online trading platform IG.

Stocks slip for a second straight day

“The rising oil price, which has so far risen by more than 16% in less than a month, creates concerns that rates might have to remain higher for longer. US bond yields have shot up to levels last seen in September 2007 while the US dollar slips for a fourth straight session and stocks for a second day."

FOMC to hold rates steady but outlook is key

“All eyes are on Wednesday's Fed rate decision with the central bank expected to keep rates steady. Comments regarding its future policy path will be closely monitored, though. Another rate hike later this year isn't off the table given the higher oil price is likely to increase inflationary pressures."

Author

Chris Beauchamp

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

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 sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve 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.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Japan's Takaichi secures historic victory in snap election

In Japan, Prime Minister Sanae Takaichi's coalition secured a supermajority in the lower house, winning 328 out of 465 seats following a rare winter snap election. This provides her with a strong mandate to advance her legislative agenda.

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.