Trump-Powell fallout sends risk assets lower

Chris Beauchamp IG

Stocks head lower after UnitedHealth warning

“Dow heavy weight UnitedHealth threw traders a nasty prognosis for coming months in its earnings today, dragging the headline US index lower and precipitating a renewed selloff across markets this afternoon. The company’s warning about the outlook just piles on the uncertainty, a point reinforced by the IMF’s downgrade of the global outlook. Even talks between the US and Japan failed to stabilise sentiment, which remains vulnerable to any and all bad news.”

“As if all this wasn’t bad enough, the US president seemed to wake up in a mood, renewing his criticism of the Fed, and specifically of its chairman. Confidence in the US as a safe haven is battered, and signs of a spat between administration and central bank could drive more outflows from US assets.”

Oil prices rise again

“The US has imposed fresh sanctions on Iran, but arguably it is news of a hawkish Israeli push for action against Tehran that is driving the bigger move higher. It is far from clear that US-Iran talks will yield much of a result, and this countering the bearish view on oil driven by recession fears.”

Author

Chris Beauchamp

EUR/USD clings to strong gains above 1.1850 on USD weakness

EUR/USD preserves its bullish momentum to start the week and trades above 1.1850. The US Dollar struggles to find demand ahead of Wednesday's critical January employment report and helps the pair continue to push higher.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold holds steady above $5,000

Gold builds on the gains it posted to end the previous week and holds steady above $5,000 on Monday. Data released over the weekend showed that the People's Bank of China extended its Gold 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.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

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.