Stocks struggle to maintain upward momentum

Chris Beauchamp IG

Equities are ending the week lower on the whole, although the FTSE 100 is winding up flat for the session.

Stock markets suffer heavy losses
Hawkish central bank turn unnerves investors
Pound gives back some of Thursday’s gains against the dollar

Markets: it has been a topsy-turvy week in stock markets, but as the last full trading week of 2021 draws to a close in London the sellers appear to have the upper hand. Macro concerns might be playing a part but a lot of investors have been edging towards the door for some days now, and the lack of any lasting bounce in stocks this week has meant that more are looking for ways to book gains ahead of the two volume-light weeks that will bring 2021 to an end. While the initial reaction to the Fed move was positive, almost exuberantly so, as Wednesday’s FOMC and Thursday’s BoE hike recede into the past investors appear to be much more cautious, contemplating a year ahead where the tide of central bank largesse definitely starts to go out.

Pound: traders in GBPUSD have been hitting the sell button hard in recent weeks, and after a short bounce yesterday the wall of selling has returned. It appears that there is plenty of scepticism out there that Bailey and the rest of the MPC will opt to hike again any time soon. The best hope for sterling bulls probably lies in some short-term dollar softness instead.

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Chris Beauchamp

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Ripple’s DeFi shift in focus: Navigating XRPL EVM sidechain growth, XRPFi migration and liquidity

Ripple (XRP) has continued to trade under pressure, extending its decline by approximately 63% from the record high of $3.66 in July. The remittance token is trading above support at $1.35, while its upside appears limited by key supply zones, starting with $1.40, at the time of writing on Tuesday.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.