Swing Trades: GBP/USD, USD/CAD

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD: UK Manufacturing Production

The Sterling depreciated against the US Dollar, following factory output data on Friday. The GBP/USD exchange rate lost 36 pips or 0.26% in the next half an hour, though the downtrend was weakened by the NIESR GDP estimate report.

The UK industrial output fell by the most since 2012 in the month of December, as the main oil pipeline was shut down temporarily, but the manufacturing growth confirmed the economy’s strong expansion pace at the 2017 end. The separate report by the National Institute of Economic and Social Research showed that Britain’s economy expanded 0.5% in the three month period ending in January, supporting the 1.9% annual growth rate forecast, slightly faster than the BoE anticipated.

USD/CAD: Canada Employment Change

The Loonie dropped initially against the US Dollar on disappointing Canada’s labour market data. The USD/CAD currency pair added 64 base points or 0.51% to touch the 1.2670 mark.

The economy of Canada lost the most positions in nine years in the beginning of 2018, confirming expectations that the BoC would keep rates on hold next month. Statistics Canada reported a decrease of 88K jobs in January, missing expectations for a 10K gain. Meanwhile, the unemployment rate increased to 5.9% in the reported month from December’s 5.8%. Analysts suggested that the report is unlikely to change the trajectory of the Bank of Canada of a gradual monetary tightening path to come this year.

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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.