The US equity market rebounded yesterday

Jens Peter Sørensen Danske Bank A/S

Market movers today

Today, we have a very light data calendar with no global market movers being released.
ECB President Mario Draghi will be speaking again, followed by Bundesbank President Jens Weidmann later in the day. They are scheduled to deliver keynote addresses at the Frankfurt European Banking Congress and markets will again watch out for any clues about ECB policy during this otherwise relatively unevent ful day.
The Netherlands is up for review by S&P. The Netherlands is ‘AAA/stable' and we do not expect any change to either the rating or the out look.

Selected market news

The US equity market rebounded yesterday as the odds of a corporate tax cut are rising after the House of Representatives passed its version of the tax bill. This is a key milestone for President Trump in changing the tax code. There are still tough challenges ahead as it needs to pass in the Senate, where the Republicans only have a two-seat majority.

The 10Y US Treasuries came under pressure on the back of the tax plan and 10Y US Treasury yields rose more than 5bp, while the USD strengthened relative to EUR and JPY.

The positive sentiment in the equity market has continued in Asia this morning with a rise in stock prices across the region.

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Jens Peter Sørensen

Danske Bank A/S

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

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 remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed 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.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

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.