UK construction output continues to fall

XTB Analysis Team XTB Poland

Monthly construction output fell a further 0.2% in August with the level of output now reaching 1.5% below its pre-pandemic level. Meanwhile, new work remained flat this month with repair and maintenance falling slightly. Today's data further illustrates the current challenges faced by the economy, with factors like supply chain issues, labour shortages and rising fuel prices continuing to hold back the post pandemic recovery heading into the final quarter. If the situation continues, we could be seeing some measures introduced to deal with the slowing pace of recovery in order to support the economy more effectively in the coming months.

Major banks start Wall Street earning season

As always, earnings season in the US begins with major financial institutions and today investors will receive earnings reports from JP Morgan as well as Blackrock. This is a very important time in markets as investors will be looking closely to see how companies performed during recent economic uncertainty brought on by supply issues, rising fuel prices and unclear monetary policy. While today’s results could have a limited impact on stock markets, they will be worth following as the FED continues to remain ambiguous in regards to a timeline for tapering, which it said would be announced once the economic data suggests continued growth and sustained recovery. In addition to today’s earnings reports, investors will also be keeping an eye on CPI data from the US and minutes from the recent central bank meeting which could further shed light on the prospects in the immediate future and cause some reactions through markets, particularly if something unexpected is announced.

Author

XTB Analysis Team

XTB Poland

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.