Rotation hits tech again, Bitcoin struggles to hold $87K

Chris Beauchamp IG

The rotation out of tech continues to pressure the Nasdaq, while risk appetite remains muted ahead of a busy schedule for the week, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stock rally fades as US markets open

The morning’s positivity has drained away as Friday’s selling carries over into the Monday session in the US. At this point, the temptation for many investors to book profits after such a strong recovery since April must be overwhelming, especially with plenty of macro events on the calendar for the week. That said, we are still about 36 hours from the traditional pre-Christmas liftoff for stocks, so it might not be entirely wise to check out too soon.

Crypto weakness a worrying sign

It is a similar story in crypto currencies, as the buyers fail in their attempts to reverse the losses seen in the second half of last week. While there is still some bullish flows into the space, it seems that there is still too much leverage waiting for an exit, which this morning’s modest bounce seems to have provided. Tech stocks are suffering as asset rotation goes on in equities, and crypto currencies seem to be similarly afflicted.

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Chris Beauchamp

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.