Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
$1.9 tln stimulus is unlikely to support the USD in long term
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading below the cloud. Further bearish pressure will lead the currency pair to retest the previous lows.
Fibonacci Levels
XAG/USD: Silver is struggling to move higher and remains below the 38.2% retracement area.
European Market View
Asian equity markets were subdued after failing to shrug-off the weak lead from the US where major indices were dragged lower. Asian shares stumbled lower in afternoon trade on Friday, reversing earlier gains as rising COVID-19 cases in China reinforced investor concerns over the prospects for a global economic recovery. Earlier on Friday, an Asian regional share index had edged near record highs after US President-elect Joe Biden proposed a $1.9 trillion stimulus plan to jump-start the world's largest economy and accelerate its response to COVID-19. Looking ahead, highlights from the macroeconomic calendar include UK GDP, US retail sales, NY Fed manufacturing, industrial production, Uni. of Michigan, earnings from JP Morgan, Wells Fargo, and Citigroup.
EU Key Point
- UK November monthly GDP -2.6% vs -4.6% m/m expected
- Germany reports 22,368 new coronavirus cases, 1,113 deaths in the latest update today
- The UK is preparing to vaccinate up to half a million people a day from next week
- Italian PM Conte is reportedly set to face a vote of confidence on Monday
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Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
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European Currencies Ahead of the Banks' Statements
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
Will the FOMC Surprise the Markets?
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
What awaits the Oil Market in February?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
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