Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
AUD/USD : climbs to three-week high as dollar continues to stay pressured.
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAG/USD: Silver continuous to stand on 23.6% retracement area. Bulls have returned once more but are struggling to send price higher.
EU Market View
Asian equities traded with a mild positive bias following on from the S&P 500 and Nasdaq 100 notching fresh record highs. European stock markets are seen opening mixed Wednesday, largely continuing the positive global trend on the back of falling bond yields as U.S. inflation concerns eased, although other concerns over Covid-19 remain. The dollar fell to multi-week lows against the euro and the yen on Wednesday, after an uptick in a U.S. consumer price gauge did not spark wider fears about accelerating inflation and the Federal Reserve's tapering, pushing down U.S. bond yields.
Wall Street ended mostly higher Tuesday, with the broad-based SP500 posting another record close, and Asian stock markets have largely followed suit as key U.S. Treasury yields fell to a fresh three-week low after data showed U.S. inflation was not spiralling out of control.
The U.S. CPI rose 0.6% in March, the biggest increase since August 2012, but the market had seemingly positioned for a higher figure as rising vaccinations and fiscal stimulus released pent-up demand.
Catch up on COVID-19 vaccine developments, multiple remarks on the geopolitical front and the RBNZ rate decision ahead of multiple speakers including Powell, Williams, Clarida and Lagarde alongside US bank earnings.
Looking ahead, highlights include, US import/export prices, DoEs, ECB's de Guindos, Panetta, Lagarde, Schnabel, Fed's Kaplan, Powell, Williams, Clarida, Bostic, BoE's Haskel, supply from the UK & Germany, earnings from JP Morgan, Wells Fargo and Goldman Sachs.
EU Key Point
- BOJ's Kuroda: Will persistently continue with powerful easing towards 2% inflation target.
- ECB's Villeroy says could possibly look to end PEPP purchases in March next year.
- French minister says EMA likely to issue new guidance on J&J vaccine today.
- Germany reports 21,693 new coronavirus cases, 342 deaths in latest update today.
- 50 seen as support for USD/JPY - to rise from there as US yields move higher.
- China's Li: China and the US should step up communication, manage differences, respect each other.
- NZD little changed (down a few tics) after the RBNZ leaves monetary policy unchanged.
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.