Stocks steady but Oil prices rise

Chris Beauchamp IG

Equities remain relaxed despite heightened Mid-East tensions, but oil prices are continuing to gain, increasing worries about a new wave of price growth, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks remain calm despite rising tensions

Friday’s bumper jobs report has allayed any lingering fears of a US recession for now, and has helped stock markets to hold their ground despite the rising tensions across the Middle East. Investor calm is likely due to hopes that the delayed Israeli response to Iran means that Tel Aviv will avoid escalating the conflict much further.

Oil keeps on rising

Admittedly oil prices are continuing to rise on expectations of a much tighter outlook for supply and demand. Having had a couple of months focusing on US job market weakness, we could be pivoting back to inflation-watching, though the spike is unlikely to show up much in this week’s data.

Author

Chris Beauchamp

EUR/USD weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.