Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
AUD/USD is dropping after the RBA decision and statement
Information is not investment advice
Ichimoku Kinko Hyo
AUD/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 after yesterday’s rally is trading above 38.2% retracement area.
EU Market View
Asian equity markets advanced after the firm handover from Wall St with the resurgence led by the tech sector. European stock markets are seen opening higher Tuesday, helped by signs of progress towards further U.S. stimulus, while concerns over volatile retail-led trading receded. U.S. President Joe Biden sat down late Monday with a group of ten Republican senators to discuss their proposal of a scaled-back Covid-19 stimulus package, in a welcome sign of bipartisan co-operation in Washington.
That said, Biden insisted on keeping the $1.9 trillion price tag that he proposed in January, saying that the downsized effort does not go far enough to solve the coronavirus crisis. And senior Democrats later filed a joint $1.9 trillion budget measure in a step toward aimed at bypassing Republicans.
Oil prices pushed higher Tuesday, helped by newswire reports that the major oil producers have shown restraint in terms of production levels in January even as prices rose.
Looking ahead, highlights from macroeconomic calendar include Eurozone GDP, OPEC JTC meeting, Fed's Kaplan, Williams, Mester, speeches.
EU Key Point
- Silver in retreat, falls by 4% back below $28.
- EU's von der Leyen: Target is to vaccinate 70% of adult population in Europe by summer.
- Germany reports 6,114 new coronavirus cases, 861 deaths in latest update today.
- The Reserve Bank of today Australia said the cash rate is not expected to rise until 2024.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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.