ISM data hobbles Wall Street

Chris Beauchamp IG

A relief rally in Europe contrasts with a poorer start to July on Wall Street, thanks to another poor ISM figure, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 makes small gains

“It’s not been a roaring start to the week in London, but the gains for continental markets have spilled over to London, while both Land Securities and British Land have made strong gains following a broker upgrade. For now European markets are enjoying a relief rally, but with French yields still rising there is plenty of nervousness about the outlook for France and the French economy.”

US stocks turn lower in early trading

“July has been a strong month for the past decade, but the first session has not gotten off to a particularly cheery start. Early gains for the Dow were promptly walloped by a weaker ISM manufacturing figure, which was below 50 for the third month in a row. With Thursday out of the picture it looks like investors will be twiddling their thumbs for most of the week.”

Author

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.