US stocks lurch further towards a bear market

Chris Beauchamp IG

Heading into the close the FTSE 100 is down 20 points, while US markets have dropped sharply in early trading.

While Europe is finishing the day off the lows, on Wall Street the outlook remains grim as equities continue to give back ground won earlier in the week. It looks like the seasonal rally has been put back again, with slowing growth figures from around the globe turning investors cautious once again. Growth estimates are being revised down around the globe, and the slow but steady shift away from loose monetary policy continues to make equities less attractive. Investors continue to sell into rallies it seems, a situation that seems set to continue for some time. These bouts of heavy selling usually take place in the latter part of the US session, so today could still get worse if US traders
take the same course this evening.

Next week, despite being the last one before Christmas, sees plenty of data, but all eyes will be on the Fed as it issues its last decision of 2018. The rate hike is less important than what comes with it, and with markets so volatile the Fed’s statement could easily make the end of year rally, or just as easily turn it into another significant leg lower.

Author

Chris Beauchamp

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.