Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
AUD/JPY: Risk off remains and gains momentum
Information is not investment advice
Ichimoku Kinko Hyo
CAD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAU/USD: Gold a remarkable sell off is taking place.
US Market View
U.S. stocks are set to open lower later, on a combination of the pandemic news and the downbeat news from Tech’s Old Guard late on Thursday. Crude oil prices also fell on the same pandemic concerns. News flow from the pandemic took a turn for the worse, as President Joe Biden warned of another 100,000 deaths within the next month, while Tokyo faced up to fears it may have to cancel the rescheduled summer Olympics. PMIs in Europe also ticked down and government deficits ticked up. The news flow around the pandemic took a darker turn around much of the world. President Joe Biden said the U.S. death toll from Covid-19 could top 500,000 in the next month, while Germany’s topped 50,000.
U.K. Prime Minister Boris Johnson warned that the current lockdown could last until summer and Japan’s government was forced to deny reports that it will be forced to cancel the summer Olympic Games, which were already rescheduled once last year.
The Eurozone economy fell deeper into contraction territory at the start of the year, according to purchasing managers indices released by IHS Markit.
The Composite PMI for the Eurozone fell to 47.5 from 49.1, against a backdrop of restrictions on social life and economic activity that have been successively tightened as new strains of the virus have been discovered.
USA Key Point
- London COVID-19 variant found in Japan.
- Pfizer supply issue slows vaccination program.
- AUDNZD bond yield divergence favors sellers.
- Copper falls nearly 2% on risk off tones.
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?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.