US government agrees a short term budget

Halo Financial Team Halo Financial

Today's Highlights

Sterling recovers
US government agrees a short term budget
UK government borrowing data awaited

Current Market Overview

Could it be the coffin for crypto currencies?

Every few days there is another nail being hammered into the coffin of crypto-currencies. The latest is that South Korea is clamping down on anonymous banking as a means to trade in these volatile electronic currencies. Central banks and treasuries don’t like them because they are an anonymous way of shuffling funds around and that is manna from heaven for money launderers. The average price of crypto-currencies has fallen 18% in the last three days.

US government compromise doesn’t help US Dollar

As I suggested yesterday, the US government reaching a compromise to stop the shutdown and keep the civil service in business until 8th February wasn’t enough to strengthen the US Dollar. In fact the Pound made gains against the beleaguered USD yesterday; a day with almost no other data to look at. The Euro-USD rate was less bullish but is still above $1.22.

UK awaits positive data - Pound is up

The Sterling – Euro exchange rate is back up flirting with €1.14 as traders prepare for UK public sector borrowing data which is forecast to be quite positive. A substantial drop in borrowing is expected. We will also get the CBI industrial trends survey, which should remain in positive territory; albeit a tad down on the December reading. The GBPUSD rate could test the $1.40 level and the GBPEUR rate has the chance to break above €1.14 as well. Watch this space.

Euro could get a boost today

This morning will also bring the German ZEW survey results and the economic expectations index is forecast to be strong but a tad down on last month’s. Whether that, or something that comes out of the ECOFIN meeting of the EU finance ministers will be enough to boost the Euro is another matter. However, there is a feeling that this afternoon’s Eurozone Consumer Confidence survey will be very upbeat and that could be the catalyst that starts the Euro gaining ground.

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Halo Financial Team

Halo Financial

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

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.