Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
AUD/USD : head and shoulders top attracting attention
Information is not investment advice
Fibonacci Levels
XAG/USD: Silver stands below 23.6% retracement area. Bearish pressure is growing, and silver moves to a full retracement.
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.
EU Market View
European stock markets are seen opening lower Wednesday, continuing the global weakness, as doubts about the speed of recovery from the Covid-19 pandemic weigh on sentiment. The safe-haven U.S. dollar approached a four-month high on Wednesday as concerns over a third COVID-19 wave in Europe, potential U.S. tax hikes and escalating tensions between the West and China sapped risk appetite. The yen also strengthened and U.S. Treasuries were bid while Wall Street stocks and crude oil plunged as investors weighed the outlook for global growth. Oil prices pushed higher Wednesday, steadying after the sharp losses of the previous session, but worries about a slow recovery to demand remain given the fresh lockdowns in Europe and a build in U.S. inventories.
US President Biden's first proposals on discretionary spending for fiscal 2022 will be released next week and a full budget is expected later in the Spring. Looking ahead, highlights from macroeconomic calendar include UK CPI, EZ, UK & US flash PMIs, EZ consumer confidence, Fed's Barkin, Powell, Williams, Daly, Evans, Treasury Secretary Yellen, ECB's Lagarde.
EU Key Point
- AUD/USD challenges key support level as sellers start to search for more downside momentum.
- BOJ's Kuroda: To continue with powerful monetary easing persistently.
- A break below 0.7000 spells more risk for NZD/USD.
- Germany reports 15,813 new coronavirus cases, 248 deaths in latest update today.
- AUD/USD head and shoulders top attracting some attention.
- Australia's largest state to substantially remove COVID-19 restrictions from Monday.
- EUR/USD at risk of a further decline, levels to watch for a breakdown.
- GBP/USD to extend the decline to the 1.3600 level.
- Dollar shrugs off yields and continues rising.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
Popular
European Currencies Ahead of the Banks' Statements
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.
Will the FOMC Surprise the Markets?
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.
What awaits the Oil Market in February?
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.
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