Wall Street advances to new records

Chris Beauchamp IG

Heading into the close, the FTSE 100 is flat, but US markets are advancing once again.

US equities are pushing higher after a shaky start, with equities having weathered options expiry in positive fashion. Kudlow’s trade comments have provided the foundation for the bounce, and a solid bounce in US retail sales compared to a month ago has added fuel to the fire. Even the lacklustre FTSE 100, which has spent the week diverging from the US in impressive fashion, is managing to stage a late rally. The positive read on US retail sales is a welcome development, sending a signal about the confidence of US consumers, and with earnings season having pointed towards a nascent recovery for US corporations, the stage is set for a continuation of this bull market. Adding to this, cash
balances at fund managers are falling once again, putting more power behind the broader move higher. Talk of Dow 30,000 by Christmas might not be so far-fetched as previously thought.

The end of the week sees the pound pushing back to $1.29, building on the rally from Monday. After some indecision mid-week, sterling traders are taking a more bullish view as fresh polls point to the persistence of a wide Conservative lead over Labour. There is still a long way to go, and manifestos have not yet been presented, but so far the campaign is going Boris’ way.

Author

Chris Beauchamp

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.