Netflix earnings push Wall Street higher

Chris Beauchamp IG

US stocks have been given fresh momentum by Netflix’s solid results, while the US dollar is attempting to stem its recent losses, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Netflix earnings power fresh risk-on move

Thoughts of tariffs have been banished, if only briefly, from investors’ minds thanks to another set of stellar numbers from Netflix. The end of 2024 saw a lot of worry about whether such tech stocks could justify their eye-watering valuations. Netflix, at least, has proved it is worthy of its premium rating. The news has bolstered risk appetite across the board, and the S&P 500 finds itself knocking on the door of a new record high, joining those set by the FTSE 100 and Dax in recent sessions.

Dollar stabilises after run of losses

An absence of economic news today has not prevented a small recovery in the greenback. Fears (or hopes) of immediate tariffs have been misplaced so far, but the announcement of a $500 billion investment by Softbank and others suggests that businesses will continue to flock to the US economy now that Trump is in power. Notably the dollar has edged higher against the yen despite the likelihood of a BoJ rate hike this week – worries about tariffs and their impact may well cause Japanese policymakers to err on the side of caution when making predictions about the path of rates further into 2025.

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Chris Beauchamp

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.