Euro pressured by weak fundamentals, rising dovishness [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

Major stock indices across Europe and US were up on Thursday, after a few good-looking earnings across both continents including Hermes, Barclays, Unilever and Renault in Europe and Tesla and UPS in the US, gave a smile to investors after three cloudy sessions.

Overall, the earnings season is going well in the US, less well in Europe. The latter also matches the macroeconomic news where data is strong in the US, and much less in Europe. The EURUSD remains under pressure of economic demise and rising dovish voices at the European Central Bank (ECB) that fuel the thinking that the ECB could, and should consider lowering rates by bigger chunks.

In Japan, the Yen is better bid but the USD/JPY consolidates gains above the 150 level and the risks remain tilted to the upside into the election weekend, which could see the country’s ruling party lose its majority in the lower parliament for the first time since 2009. The latter would be bad for both the yen and the Japanese stocks.

Finally in energy, US crude failed an attempt to clear the 50-DMA. Oil bulls may not be in peak form lately, risks tend to lean to the upside heading into weekends due to the potential for an escalation in the Middle East conflict.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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.