Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
British Pound Under Pressure
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAU/USD: Gold moves below 38.2% retracement level. It seems that gold bulls still struggle to move higher.
EU Market View
Global stocks barely budged on Friday as investors tightened positions with less than two weeks to go before the U.S. presidential election and awaited a breakthrough in stimulus talks in Washington.
Looking ahead, highlights from macroeconomic calendar include UK Retail Sales, Eurozone, UK, and US PMIs (Flash), CBR Rate Decision; S&P reviewing Greece, UK and Italy. The final Presidential Debate prompted little market action, but was overall structured, civilized and touched upon policy.
EU Key Point
- China's FX regulator said the CNY is more stable than expected and has maintained relatively high flexibility
- US President Trump said a COVID-19 vaccine is ready and will be announced in the coming weeks, but it is not a guarantee
- France's Le Maire: Q4 will show negative figure for French economy
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.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?