Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn More
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn More
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn More
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn More
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn More
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn More
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn More
API Trading

Create your own trading platform or data tools with our cutting-edge APIs.

Learn More
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn More
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn More
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn More
Partnership

Plug into the next-gen platforms and the trades your clients want.

Create a live account
About ThinkMarkets
 
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn More
Security of Funds

Security of your funds is our number one priority. Find out more about our insurance policy with Lloyd's of London.

Learn More
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn More
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn More
Contact Us

Our multilingual support team is here for you 24/7.

Learn More
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
search
Create account

Risk assets make positive start to new week

Fawad Razaqzada Fawad Razaqzada 15/02/2021
Risk assets make positive start to new week Risk assets make positive start to new week
Risk assets make positive start to new week Fawad Razaqzada
The new week has started how the last one ended with investors continuing to push up prices of risky assets. European stocks extended their recovery, with the FTSE also joining the rally even as the pound has hit the $1.39 handle. Mining stocks led the gains as copper rallied. Sentiment remains positive towards risk thanks to the ongoing COVID vaccine rollout and slowing virus outbreaks, boosting expectations about a sharp global recovery later this year – especially as bets are also rising for more US stimulus. This is also helping to fuel a rally in crude oil, with WTI nearly hitting $61 a barrel. Oil prices have also risen on expectations over higher demand for heating amid an arctic freeze in parts of the US. But with the US and China out, volumes are likely to be on thin side today. In the US, banks will be closed today in observance of Presidents' Day, while Chinese markets will remain shut until Thursday due to the Spring Festival.

Last week, Bitcoin and US equity indices hit fresh record highs as investors continued to favour the ongoing “reflation” trade, hoping that the vast government and central bank stimulus, combined with the possibility of more stimulus as well as a sharp recovery later this year due to the ongoing vaccine rollouts, will help to spur economic growth. The rally fizzled a little by mid-week due to profit-taking with the macro calendar being quiet. But on Friday, the indices bounced back sharply and the US dollar continued to be sold after the Fed had talked down the prospects of early QE tapering. This view was underscored by the below-forecast jobless claims and last week’s poor nonfarm payrolls data. Gold and silver were also showing some signs of life, but the ongoing risk rally dented kept the appetite for the haven yellow metal low. 

Top 3 factors to watch out for this week:
 
  • European company earnings and macro data – the week ahead features a handful of key macro pointers, especially from the Eurozone, while on a micro level, the focus has now shifted to Europe after most S&P 500 companies reported their results in the prior weeks.
  • Reflation trade – will we see an acceleration in the FTSE rally?
  • Bitcoin – could the digital currency hit $50K?
Data and earnings highlights

Monday:
  • Data: Japan’s GDP printed +0.2% q/q vs. 0.5% expected, causing the yen to drop across the board. Eurozone industrial production is due at 10am GMT, ahead of Canadian manufacturing sales in the afternoon.
  • Earnings: BHP and Michelin
Tuesday:
  • Data: Eurozone flash GDP and employment change; German ZEW; US Empire State Manufacturing Index
  • Earnings: Glencore
Wednesday:
  • Data: UK and Canadian CPI estimates, US retail sales and industrial production, and FOMC meeting minutes
  • Earnings: Rio Tinto and British American Tobacco
Thursday:
  • Data: Aussie employment report, ECB policy meeting minutes, US unemployment claims, housing starts, building starts and Philly Fed manufacturing index
  • Earnings: Airbus, Carrefour, EDF, Orange, Barclays and Smith & Nephew
Friday:
  • Retail Sales from Australia, UK and Canada
  • UK GfK Consumer Confidence and CBI Industrial Order Expectations
  • Flash services and manufacturing PMIs from Germany, Eurozone and UK
  • Earnings: Hermes International Danone, NatWest, Segro and Renault
 
Could the FTSE join the global rally?

With lots of European earnings to come (see above), the focus will clearly be on European indices such as the FTSE. While the strength of the pound has held back the index, the fact that UK and global monetary conditions are going to remain loose and government spending high, the long-term outlook on the FTSE is positive. This is especially because the UK is miles ahead of the EU in the vaccine race and after it avoided a no-deal Brexit.

The FTSE actually rebounded strongly on Friday, causing a breakout above THIS bull flag pattern:

FTSESource: ThinkMarkets and TradingView.com

The index will need to hold its breakout keep the bulls happy, as they seek fresh highs for the year.
 
Bitcoin $50K incoming?

Bitcoin closed sharply higher for the fifth consecutive week and almost got to the $50K handle at the weekend, before dipping slightly. The Tesla announcement triggered buying frenzy last week, before the digital currency consolidated for the rest of the week. With more and more household names starting to accept Bitcoin and other cryptos as a form of payment, speculation is ripe that BTC/USD could be heading north of $50K soon. There are also worries about the value and worth of fiat currencies, with governments worldwide debasing their currencies, making them less worthy, which is another reason a growing number of people are moving into digital currencies. Some would go as far as to say that even gold has lost its true safe haven status as it is being manipulated in the paper form with many central banks and other institutions allegedly keeping precious metal prices superficially low. Some investors clearly think that Bitcoin is thus offering a much better store of value, and a good rate of return than gold, even at these high levels.

Bitcoin is also finding additional interest due to its strong bullish momentum. People like things that are rising rapidly in value, and this bullish momentum has drawn many speculators who like to ride the uptrend for hopefully some decent profit. The rally has been accelerating ever since prices broke above that 2017 high near $20K in December. Unless Bitcoin now breaks its series of higher highs and higher lows, the path of least resistance remains to the upside, with $50K now being the next major objective:

BitcoinSource: ThinkMarkets and TradingView.com

As well as a psychologically-important level, the $50K area also corresponds with the 161.8% Fibonacci extension level of the last downswing from January high. This makes it an ideal profit-target area. Could we get there in the next few days, or will see a correction first?
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Learn more to earn more

our Education center

Related articles:

Stocks rebound with reflation trade back in f...

By Fawad Razaqzada

24/02/2021

Techs slammed amid early signs of taper tantr...

By Fawad Razaqzada

23/02/2021

Gold rebounds amid soft dollar as yields ease...

By Fawad Razaqzada

22/02/2021

GBP/USD holds 1.40 as UK prepares for lockdow...

By Fawad Razaqzada

22/02/2021

Week Ahead Preview: February 22, 2021

By Fawad Razaqzada

19/02/2021

Meet our contributors
Mohammed Zidan
×
Mohamed Zidan
Chief Market Strategist, Dubai

Mohamed Zidan is a chief market strategist in Dubai and CFA Level III candidate. He reports to London office and has more than eight years of experience focusing on Forex, Commodities, Indices and global economic developments as well as central bank policies and intermarket analysis. worked as FX Analyst, and Strategist in several different organizations and for various departments. He holds a bachelor’s degree from Cairo University in Egypt. Mohamed Zidan is a regular guest on several major TV networks such as; CNBC Arabia, Fran24 Arabic, Alarabiya , Dubai TV, Sama Dubai, Skynews Arabia, Saudi National News, and Egypt National news.

Zidan presents insight to the markets movements, holds open discussions and relays possibilities related to the world’s financial market and economies.

Mohamed Zidan has been invited as a guest speaker for several international seminars. Zidan provides daily and weekly outlook for the markets. His experience ranges from currencies, commodities, stocks and options. he applies a top-down, global macro approach combined with price action to generate trade ideas and anticipate the next move.

Victor Golovtchenko
×
Victor Golovtchenko
Global Macro Analyst, Sofia

Victor Golovtchenko has been analysing and trading foreign exchange markets since 2004, and is actively involved in the online media space since 2014. His tenure as a Senior Editor at a major brokerage industry news outlet was followed with a breakthrough into the financial news space with the brand new TradeStar website.

As an affectionate macro-focused analyst, he has an integrated framework to look at financial markets as a whole, identifying gaps between currencies, stocks, bonds, and other asset classes to get a core complete picture of the macroeconomic environment.

Fawad Razaqzada
×
Fawad Razaqzada
Market Analyst, London

Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms. He leverages years of market knowledge to provide retail and professional traders worldwide with succinct fundamental & technical analysis. Fawad also offers trading education to help shorten the learning curves of developing traders.
 
His colleagues consider him an expert at reading price action on the charts. This together with his deep understanding of economics and fundamental analysis, and trading experience, puts him in a great position to forecast short term price movements. Fawad covers a wide range of markets, including FX, commodities, stock indices and cryptocurrencies and his comments are regularly quoted by the leading financial publications such as Reuters and Market Watch. In addition to ThinkMarkets, Fawad also provides analysis and premium trade signals on his own website at TradingCandles.com.
 
 

Carl Capolingua
×
Carl Capolingua
Market Analyst, Melbourne

Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions. Specialising in Australian and US stock markets in particular, Carl uses a top-down approach to assess the global macro picture before using both technical and fundamental techniques to select stocks. He regularly appears as an expert commentator on a number of media outlets throughout the Asia-Pacific region.
 
 
 

Mohammed Zidan
Mohamed Zidan
He has more than eight years of experience focusing on Forex, Commodities, Indices and global economic developments as well as central bank policies and intermarket analysis.
Victor Golovtchenko
Victor Golovtchenko
Victor Golovtchenko has been trading on the foreign exchange markets since 2004, and is actively involved in the online media space since 2014. His tenure as a Senior Editor follows his role with TradeStar.
Fawad Razaqzada
Fawad Razaqzada
Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms.
Carl Capolingua
Carl Capolingua
Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions.

Feel confident?

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top