Headlines:
Precious metals hold losses after the plunge in Asia trading earlierBOE leaves bank rate unchanged at 3.75% in February meeting decisionBOE governor Bailey says there should be scope for some further easing of policyUSDJPY continues to surge towards the intervention level; Japanese officials look hopelessBitcoin teeters towards $70,000 mark as the selloff intensifiesUS January Challenger layoffs 108.435k vs 35.553k priorEurozone December retail sales -0.5% vs -0.2% m/m expectedGermany December industrial orders +7.8% vs -2.2% m/m expectedGerman construction activity posts renewed contraction in JanuaryUK January construction PMI 46.4 vs 42.0 expected
Markets:
Precious metals stay in focus after selloff in Asia tradingGold down over 2% to $4,856; Silver down over 13% to $76.33Bitcoin extends selloff in drop over 4% below the $70,000 levelDollar holds steadier across the board, USD/JPY inches up above 157.00 despite intervention risksSterling pound dragged lower after a more dovish tilt by the Bank of EnglandUS futures under pressure as tech struggles continue, S&P 500 futures down 0.6%European indices hold slightly lower amid softer broader market sentimentWTI crude oil down 1.3% to $63.65 as back-and-forth swings continue on geopolitical headlines
It was a lively session with some fun market moves all around. It all started in Asia trading with precious metals being hammered lower, in particular silver. A quick drop in less than two hours from $89 to $74 sent dip buyers packing their bags on the week and the pressure kept up in European morning trade. Silver is still down by over 13% now to $76.33 on the day.
The drop in gold was less pronounced but is still a setback for dip buyers. The precious metal failed to settle above $5,000 yesterday and is now down over 2% to $4,856 on the day.
The mood music across broader markets is not helped by a continued selloff in cryptocurrencies and tech shares once again. Bitcoin is now down over 4% in a big test below the $70,000 mark – its lowest since November 2024.
Meanwhile, US futures are now starting to slide after having kept somewhat steadier for the better part of the morning in Europe. S&P 500 futures are now down 0.6% with Nasdaq futures down 0.9%. The negative risk mood is keeping European indices on edge as well with the DAX down over 1% on the day now.
In the major currencies space, there wasn’t too much action. The dollar is keeping steadier across the board amid the chaotic movements elsewhere. Of note, USD/JPY inched back above 157.00 in the early part of the session in testing Japan’s appetite for intervention. For now, still no bite.
The pound was the big mover though but it came later after the BOE policy decision. GBP/USD fell from 1.3610 to 1.3560-70 levels after a narrower vote split (5-4 vs 7-2 expected). Alongside that was a slight dovish tweak in the statement language and forecasts, with policymakers angling towards a potential rate cut in April next.
This article was written by Justin Low at investinglive.com.