Risks stay heavy as US House cancels Thursday’s planned session, China-linked hackers attack Microsoft email server

Anil Panchal FXStreet

Early Thursday in Asia, Wednesday night for the West, White House Bureau Chief Steve Herman came out with tweet suggesting the US House will close the legislative week earlier amid threats on Capitol Hill.

The media man tweeted:

House scraps planned Thursday session after security officials warn of a possible plot to breach the US Capitol by an unnamed militant group amid extremists' fabricated claim #March4th is the “true Inauguration Day” when @POTUS45 will be sworn in for a second term.
— Steve Herman (@W7VOA) March 3, 2021

Also negatively affecting the sentiment are the chatters over cyberattacks on Microsoft’s email server. However, US Congressman John Katko said there’s “nothing new” while highlighting, "The intent of Chinese-backed hackers to exploit vulnerabilities like this across American infrastructure is sadly nothing new."

FX implications

Although news relating to China has been turned down, US President Joe Biden is up for speaking at the White House and hence traders are cautious to get more clues for the much-awaited $1.9 trillion stimulus. The same weighs on the risk barometers in Asia, like AUD/USD and gold. That said, AUD/USD remains depressed around 0.7770 by press time whereas Gold drops towards $1,700 while fading the bounce off fresh low since June 2020 marked a few hours back.

Read: Gold Price Analysis: XAU/USD bears eye sub-$1,700 area amid strong yields, US dollar

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.