Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
AUD the leader today after very strong jobs numbers
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver bulls returned after a dovish FOMC statement and stand in the critical 50% retracement area.
EU Market View
European stock markets are seen opening mixed Thursday, with investors digesting a reassuring statement from the Fed as well as problems with the region’s Covid vaccination program. The Federal Reserve reassured investors that it was committed to maintaining an accommodative monetary policy for some time. The Fed also projected the U.S. economy will grow by a hefty 6.5% this year, thanks in part to massive federal fiscal stimulus and optimism around the success of coronavirus vaccines. Chairman Powell indicated that while inflation is expected to reach 2.4% this year, above the central bank's 2% target, this would be a temporary surge and he did not currently see the Fed raising its benchmark overnight interest rate through 2023.
Oil prices dropped for a fifth straight day on Thursday after official data showed a sustained rise in US crude and fuel inventories, while the ever-present pandemic clouded the demand outlook.
The European Central Bank is stress testing the broader economy to assess the economic risk of climate change three decades into the future, the bank's vice president said on Thursday. While full results of the test, which includes four million companies worldwide and almost all euro zone banks, will be published in mid-2021, early results show there is a clear benefit to early action, Luis de Guindos said.
EU Key Point
- EUR/USD falls to fresh session lows as dollar firms on higher Treasury yields.
- Nasdaq futures dumped as Treasury yields surge higher.
- Dollar catches a bid as Treasury yields break higher.
- Japanese media report the BOJ will widen its target yield band for 10 year JGBs to plus/minus 0.25%.
- Lagarde speech: Risks surrounding euro area growth outlook have become more balanced.
- GBP/USD set to retest last week high at 1.4018.
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.