Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Asian markets are rebounding this morning
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The EUR/JPY pair is now trading slightly above the lower level of the Kumo. A tumble of the market will push prices to exit the cloud and will attempt to reach the previous bottom. On the other hand, an upward wave would lead the market higher within the Kumo.
In the equity space in the US markets closed lower on Thursday in volatile trading, as investors trying to digest the FOMC meeting. Consumer and discretionary led the market lower, while utilities and energy were among the outperformers. Dow Jones closed unchanged, S&P 500 lower -0.5% and NASDAQ -1.4%. VIX moved somewhat lower for the first time since the selloff. Asian markets are rebounding this morning after the sharp selloff yesterday, however Hang-Seng still in the red. US futures are pointing higher.
As for the situation between Russia and Ukraine, there was a relief rally in RUB as Russia did not rule out further talks with the US over its security demands despite the US written response falling short of Russian demands. The Russian officials indicated that the US and Russia are looking into a new meeting between the two countries foreign ministers as early as next week.
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.
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.