Readying to squeeze some more

Monica Kingsley Monicakingsley

S&P 500 presented the bull trap I talked Wednesday premarket, and FOMC brought another curveball. Powell is truly setting us up for a replay of spring 2019 – satisfaction with inflation fighting progress had been dropped, job market stance also changed, yet hawkish perceptions were talked down during the conference.

S&P 500 though didn‘t reach the 6,035 support area after breaking below low 6,070s – where does that and yields‘ unwillingness to follow in the Fed‘s preferred path leave us? With ECB cutting by 25bp today, we‘re going to see more USD appreciation, and it pays to watch the yen (that it remains within the latest range).

The incoming data of today won‘t rock the boat, and AAPL earnings will help equities higher (AMZN price action won‘t be a disappointment either while META keeps winning) – yesterday‘s earnings were also decent, and financials premarket reporting, did fairly well too.

Treat yourselves to today‘s packed video, and check these charts – what does it say about recession odds and equity risk premium as we‘re seeing some semiconductors revival?

Author

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

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.