Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
All eyes on ECB as risk off remains strong
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading in a bullish sentiment above the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bullish momentum.
XAG/USD: silver moves below the 23.6% retracement level at $23.35. Silver bulls will struggle to gain further as a risk-averse mood still exists.
EU Market View
Asian equity markets traded mostly lower following the bloodbath on Wall Street where all major indices declined by more than 3%. The BoJ maintained policy settings as expected and continued to signal a lack of urgency for immediate support.
Looking ahead, highlights from the macroeconomic calendar include Eurozone Consumer Confidence, Economic Sentiment, US GDP (Advanced), Initial/Continued Jobless Claims, German CPI (Prelim). Japanese Unemployment, ECB and BoJ Rate Decisions, ECB’s Lagarde press conference.
EU Key Point
- China's major state-owned banks said to be buying dollars to limit the yuan appreciation
- BOJ's Kuroda supports that he is ready to ease monetary policy without hesitation if needed
- Germany posts record 16 774 new coronavirus cases ahead of November 'lockdown light'
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.
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.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?