Swing Trades: GBP/USD, EUR/USD

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD: BoE Interest Rate Decision

The British Pound fell sharply against the US Dollar, as the Bank of England announced its rate decision on Thursday. The GBP/USD exchange rate depreciated 27 base points or 0.20% to the 1.3419 mark, but managed to keep the position nearing the 1.3440.

A breakthrough in Brexit negotiations diminished the risk of a disordelry Britain’s quit from the EU and is likely to encourage corporate and household confidence, the Bank of England stated. The Central Bank’s policymakers voted to keep interest rates unchanged at 0.50%, in line with expectations, after raising them last month, as inflation growth reached its strongest level in almost six years, while unemployment rate remained very low.

EUR/USD: US Retail Sales

The US Dollar touched its weakest point against the Euro, following the stronger-than-expected retail sales report. The EUR/USD exchange rate rose 23 base points to the 1.1855 area, but reversed an upward trend to be seen trading below the 1.1800 mark.

The US retail sales expended more than anticipated in November, amid the brisk start of holiday season, suggesting that sustained economic strength could set the stage for further Fed’s rate hikes in 2018. The Commerce Department stated that the country’s retail sales increased 0.8% in November, following an upwardly revised 0.5% gain in the prior month, as households bought range of goods, while cutting motor purchases.

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Dukascopy Bank SA

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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.