Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
AUD/JPY : Risk on gains further strength
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud,confirming a bullish outlook.
XAU/USD: Gold facing a further weakness the last hours and trading near a full retracement area. Gold continues to flirt with session lows as US dollar appreciates.
US Market View
U.S. stocks are seen opening higher Friday, building on the strong close to the previous session with the banking sector likely to be in the spotlight. These late gains broke a recent trend of poor finishes, with the Dow and S&P 500 now potentially recording a positive week, meaning March could be the fourth strong month in five. The Nasdaq Composite is still 1.8% lower, heading for its first down month since October. U.S. stock index futures edged higher on Friday as investors bought undervalued energy and bank stocks betting on what is expected to be the fastest economic growth since 1984, while awaiting inflation data later in the day.
Wall Street's major indexes have swung between gains and losses this week as an end-of-quarter rebalancing of investment portfolios led to alternating boost from stocks that stand to benefit from a re-opening economy and beaten-down technology stocks.
Bank stocks are likely to be in the spotlight Friday after the Federal Reserve announced late Thursday that these financial institutions can resume buybacks and raise dividends in the second half of the year, pending the results of stress tests in June.
Weekly jobless claim fell to a one-year low and fourth-quarter GDP growth beat expectations on Thursday. Friday sees the release of personal income and spending figures for February as well as the final print of the Univercity of Michigan reading for March.
Oil prices rebounded Friday amid worries that it may take weeks to free the container ship stuck in the Suez Canal, blocking supply through the key waterway for a prolonged period of time.
USA Key Point
- Dollar keeps lower as risk sentiment holds firmer on the session.
- German health minister warns that healthcare capacity could reach its limit in April.
- Germany March Ifo business climate index 96.6 vs 93.2 expected.
- USD/JPY climbs to highest level since June as Treasury yields tick higher.
- XAU/USD struggles near weekly lows, bears await a break below $1720.
- NZD/USD rebounds from multi-month lows, closes in on 0.7000.
- GBP/USD to warn of a more significant correction lower below 1.3779.
- USD/JPY to prolong its recent upward trajectory towards the 110.00 psychological mark.
- AUD/USD clings to recovery gains above 0.7600 ahead of US inflation data.
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.