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XTB TRADEBEAT

Stocks extend their recovery; USD reverses early moves

Summary:

  • Stocks build on recent gains to hit 3-week high
  • DE30 technical overview
  • USD reverses initial weakness 
  • Putin: "Russia can’t be late to Blockchain race"
  • Inflation and Powell to drive Gold prices

US stocks ended last week on a positive note and this morning there has been further gains seen in the indices. The US500 has risen to a 3-week high and is now currently trading at similar levels to those seen at the start of the month before we got the major decline on Monday 5th Feb.

Global equity markets keep on increasing after the heavy sell-off taking place at the beginning of the month. However, momentum of a rebound differs among major indices as European stocks (including DAX) have lagged behind their US counterparts of late. A technical overview of the market can be found here.

 The US dollar had begun the trading week on the back foot with declines seen against many of its major peers but as the session has worn on, there has been a decent recovery. The Buck is now back in the middle of its range after a fairly steady bid in the last couple of hours with only the crypto markets showing a significant rise against the USD on the day. 

Crypto markets began the new week trading lower, but they too have experienced a positive reversal with all 5 markets now in positive territory. There were some upbeat reports with the Russian story being a cherry on top. Let us remind that the country has not been able to take a common ground with regard to cryptocurrencies (the government and the central bank has differed appreciably), however, it could change based on the latest speech coming from Russian president Vladimir Putin. He said over the weekend that Russia needs the blockchain technology emphasizing that it is important that the country does not fall behind in the development and adoption of the revolutionary technology.

Make no mistake, inflation is a live concern on the markets. Even though the storm on equities has calmed down, question marks remain unanswered. Investors will look to the data and Powell’s speech for clues this week.

 

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