Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
British Pound Skyrockets Despite Fears
Information is not investment advice
Midday Market View
European stock markets traded strongly higher Monday, helped by positive Chinese data, while M&A deals suggested returning confidence to the corporate sector. Data over the weekend showed an increase in profits at China’s industrial companies for the fourth consecutive month in August, suggesting that the economic recovery in the second-largest economy in the world was well entrenched.
Midday Key Point
- Japan plans to begin lifting travel warnings starting from October
- Gold continues to stutter to start the new week
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.