Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Brent Crude climbed to USD119 per barrel
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The EUR/JPY pair surged in today’s session. Further bullish momentum will fuel the pair into fresh highs. On the other hand, a correction phase would bring the market to hit the Tenkan sen level.
Brent Crude climbed to USD119/bbl. overnight as market conditions continue to tighten and as Saudi Arabia raised concerns about the potential impact on its production capability amid rebel Houthi attacks.
Elsewhere, rising yields and the Ukraine war dominated sentiment on Monday. Equities were slightly lower, with defensive and value stocks outperforming cyclicals and growth. The attack on a Ukrainian steel plant sent industrial metals and sequentially steel stocks sharply higher. Also, energy and defence stocks outperformed. Dow Jones closed a little lower -0.6%, S&P500 closed unchanged while NASDAQ -0.4%. US futures continue lower this morning.
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.