A mixed start to the week: eye son US yields - ANZ

Ross J Burland FXStreet

Analysts at ANZ noted that it was a mixed session while US Treasury yields attempted a push higher, but then eased back again.

Key Quotes:

"This supported the USD, while equities and commodity prices fluctuated. The US 10-year yield rose as high as 2.996% before falling a couple of bps to 2.97%."

"The focus appears to be on inflation (read oil, tight labour market and fiscal expansion) and increasing treasury supply, where there will be $96bn worth of 2, 5, and 7 year notes auctioned this week – the most since 2014. The USD firmed against all in the G10 with commodity currencies and JPY underperforming."

"Commodities experienced some volatility after the US Treasury appeared to soften its stance against Rusal; aluminium prices fell around 7% after the news and dragged other metals prices lower too."

"Equities had a positive session in Europe after better than expected PMI’s. However, US indices struggled, especially financials and companies with links to industrial metals."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.