IMF boosts its UK forecast

Chris Beauchamp IG

Investors remain cautious across the globe, although the IMF has provided the FTSE 100 with some support this afternoon, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Wall Street drifts but FTSE 100 recovers from its lows

“Earnings from General Motors have been insufficient to lift Wall Street, but the FTSE 100 has managed to recoup some of its losses thanks to an upgrade to the IMF’s UK forecast. The institution expects more cuts from the Bank of England, a view echoed by various banks that expect rate cuts to continue next year. It wasn’t all good news for investors however, due to the prospect of more global tariffs hurting growth.”

VIX rise points the way to a choppy end to October

“October’s weakness in US stocks usually gets started around now, especially in pre-election years. Hopes that a Trump presidency will prove beneficial for the US economy in some ways were offset by the knowledge that a Republican win will also mean more disagreements over trade with both allies and foes alike. At least US GDP growth, and thus consumer spending, remains robust.”

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Chris Beauchamp

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.