GBP/USD tops $1.40

TAKEAWAYS

•    Bitcoin reaches $58,000 as market cap tops $1 trillion for the first time
•    Tesla’s investment in Bitcoin already made more than its 2020 car sales
•    WTI crude oil back under $60 per barrel as US refineries come back online after storm
•    GBP/USD hits $1.40 for first time since 2018
•    AUD/USD breaks out to highest since March 2018
•    S&P 500 drops 4 days in a row, longest losing streak this year
•    US indices close week lower after hitting record highs
•    China leaves rates unchanged: 1-year LPR 3.85%, 5-year LPR 4.65%
•    PM Boris Johnson to announce UK to ease lockdown measures in speech 
•    Donald Trump to make first speech post-Presidency at CPAC on February 28
•    WEEK AHEAD: Fed’s Powell testimony, RBNZ rate decision, G20
•    DAY AHEAD: PM Boris Johnson speech, Germany IFO

GURU WISDOM

“Anyone who is not investing now is missing a tremendous opportunity.” — Carlos Slim

MARKETS

*Daily closing price
↗ EUR/USD    1.2117        (+0.24%)
↗ GBP/USD    1.4018        (+0.03%)
↘ USD/JPY    105.43        (-0.22%)
↘ S&P 500    3906.71    (-0.19%)
↗ Hang Seng    30,644.73    (+0.16%)
↗ Gold        1782.31    (+0.38%)
↘ Oil (Brent)    62.14        (-1.60%)
↗ Bitcoin    57,450        (+2.89%)

NEWS

The British pound reaching over $1.40 was a big moment in the post-Brexit rally that has taken hold this year. It takes the pound back to its highest since 2018. GBP/USD hit highs of $1.55 on Brexit night and $1.70 in 2014. The latest move up came on the heels of news that Prime Minister Boris Johnson will announce easing lockdown restrictions on Monday in concert with a July target to have all UK adults vaccinated against COVID-19.

Bitcoin has reached a $1 trillion market cap with a move over $58,000 overnight. The market cap development is significant because as a larger, deeper market – Bitcoin is better placed to attract institutional funds. The surge in BTC since Tesla’s investment in the late 30,000s has already netted it a bigger profit than all its card production from 2020.

Wall Street indices with the exception of the Dow closed lower last week after hitting record highs. The S&P 500 finished with a 4-day slump, its worst this year. However, beneath the hood it was the tech stocks that were giving way, while cyclical stocks like materials and banks all rose across the week.

DAY AHEAD 

*Times in GMT
09:00 - German Ifo business climate index [90.5 Exp vs. 90.1 Prev]
13:45 - ECB's President Lagarde speech 
21:45 - NZD retail sales QoQ [26.7% Exp vs. 28% Prev]