US housing data rebounded more than forecast in October

European equities trade near opening levels as yesterday's risk rebound already ran out of steam. US stock markets opened up to 0.3% lower.
US housing data rebounded more than forecast in October. Housing starts rose by 13.7% M/M (vs 5.6% M/M consensus). Building permits increased by 5.9% M/M (vs 2% M/M forecast). In both cases, September data were upwardly revised.
Germany's would-be coalition partners resumed talks on Friday after all-night negotiations failed to produce a breakthrough, with Chancellor Angela Merkel's conservatives saying they would compromise further on climate change policies to secure a deal.
Portugal has made an early repayment of €2.78bn to the International Monetary Fund with the aim of paying back costly bailout loans ahead of schedule as the country's borrowing costs fall in debt markets.
ECB President Draghi said in a speech in Frankfurt that with the decision to extend QE at a slower monthly pace, the signalling effect of asset purchases has "naturally increased in prominence relative to the duration effect."
Turkish President Erdogan lashed out at the central bank, saying a lack of government intervention in monetary policy had left Turkey saddled with high inflation and facing a potential slowdown in investment.

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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.