US tech stocks rallied

Danske Research Team Danske Bank A/S

Market movers today

It is a relatively quiet day on the data front with the except ion of Sweden, where a host of different labour market indicators and new debt project ions by the debt office are due (see the Scandi sect ion next page).
In the US, the financial markets are cont inuing to absorb the Fed's rate hike decision last week. We will listen extra carefully to the speech by Evans (voter, dovish) today, as we think he may be one of the four FOMC members who does not expect any further hikes this year. See FOMC review: Hawkish Yellen ignores inflation and weaker data, 15 June 2017.

Selected market news

US tech stocks rallied yesterday with the Nasdaq 100 Index jumping the most since November, thereby rebounding from two weeks of declines, though not enough to recoup all of the losses that started on 9 June. Treasuries fell after William Dudley said halt ing the t ightening cycle now would imperil the US economy. The dollar rose to the highest versus the yen since 2 June, while gold slipped to a one-month low as haven demand ebbed. This morning, Asian equit ies are also higher.

Brent oil prices are more or less unchanged this morning and seem to have found a floor in recent days after a significant decline over the past month. We updated our views on the Commodit ies Market Guide yesterday.

In France, the financial markets are absorbing the strong parliamentary elect ion result for President Macron and his government , which gained absolute majority in the French Parliament on Sunday. Yesterday, stocks of French state-owned companies soared on speculat ion that Macron will seek a greater role for the private sector in these companies.

The negotiations between t he UK and t he EU's chief negot iat or kicked off yest erday. The UK seems to have lost its first bat t le with the European Union over the t imetable for Brexit talks, as the UK government gave in to EU demands to discuss the terms of its divorce – including the exit fee – before any considerat ion can begin on theIn France, the financial markets are future trade deal that Britain wants with Europe's common market . The UK government had originally hoped for parallel talks on both the ‘divorce' terms and a free trade agreement , but that demand has now been scrapped.

Download The Full Daily FX Market Commentary

Author

Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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.