Danske Bank has released a new publication, providing key insights into current market trends for informational purposes. The report examines significant movements in currency pairs and the crypto market, offering an analytical overview that is not intended for private customers in the UK or individuals in the US. Danske Bank A/S, regulated by the Financial Services Authority (FSA) for conducting designated investment business in the UK, emphasizes that its research analysts are restricted from investing in securities within their covered sectors. The publication, copyrighted by Danske Bank A/S, offers valuable data and forecasts for professional stakeholders.
In currency markets, the AUD/USD pair is showing resilience, holding at higher levels near 0.6350 early Thursday. This upward trend positions the pair at weekly highs, propelled by stronger-than-expected Australian Trade Balance data for January. Meanwhile, in the Asian trading session on Thursday, the USD/JPY pair has garnered fresh bids, rebounding toward 149.50.
On the cryptocurrency front, Aave (AAVE) experienced a rally on Wednesday as the market began to recover from Monday’s downturn. Other major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP have also posted modest gains. Despite these positive movements, traders continue to adopt a risk-averse approach amid ongoing volatility concerns this week. The crypto market anticipates further developments with the White House Crypto Summit scheduled for Friday.
Looking forward to monetary policy, the Federal Reserve plans to embark on quarterly rate cuts starting June 2025. Analysts predict that the Fed Funds Rate will stabilize below market pricing at a range of 3.00 – 3.25% by June 2026. In parallel, fiscal deficits are projected to remain close to last year's levels, hovering between 6-7% of GDP during both 2025 and 2026.