Economic wrap - Westpac

Ross J Burland FXStreet

Analysts at Westpac offered an Economic Wrap.

Key Quotes:

"Philadelphia Fed’s January Business Survey was the key US release in a light data day (little of note in EU other than ECB). It posted strong gains (23.6, vs expected 15.3 from previous 19.7) but it was the detail that was key. Improvements were broad based, in line with Wednesday’s Beige Book, and “prices received increased 19 to the highest reading since July 2008. US Dec Housing Starts (1226k, exp 1188k) are seasonally volatile around year-end, but showed a larger than expected rebound from Nov.’s fall.

Economic Event Risks Today

Australia: Nov HIA home Sales (no NZ data)

China’s Q4 GDP, Dec Ind. Prod., Retail Sales and Fixed Asset Investment

China GDP to continue growing at robust pace in Q4, in line with that of recent quarters at 6.7%. Fixed asset investment, production and retail sales for December also due.

UK Dec Retail sales and Canadian Dec CPI and Nov Retail Sales are released on Friday."

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 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.