Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Asian markets are following the rebound trail this morning
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The NZD/JPY pair is trading above the cloud. An upward wave would lead the exchange rate to exceed the Tenkan sen and Kijun sen level, targeting the previous top. Alternatively, a failed attempt to move higher will push prices to find support at the upper level of the Kumo.
On Tuesday equity markets rebounded, with European and US markets all higher. Growth stocks rebounded, with tech and consumer discretionary leading the way. The real estate sector did not follow the rest of the market higher, despite being one of the most sold sectors the last week. SP500 improved slowly over the trading session to finally close up +0.9%, Dow Jones closed +0.5% and NASDAQ +1.4%. Asian markets are following the rebound trail this morning, with Hang Seng higher by +2%. Futures in the US point slightly higher.
In the FX space the dollar weakened against most of the G10 yesterday, where Scandies and commodity currencies gained.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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.
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.