Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
CAD/JPY breaks to highest level since October 2018
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAU/USD: Gold facing a further consolidation on 23.6% retracement area. Bears have returned recently.
US Market View
Global shares extended gains on Thursday after the Federal Reserve said it was too early to consider rolling back emergency support for the economy, and U.S. President Joe Biden proposed a $1.8 trillion stimulus package. Fed Chair Jerome Powell said on Wednesday that "it is not time yet" to begin discussing any change in policy after the U.S. central bank left interest rates and its bond-buying program unchanged, despite taking a more optimistic view of the country's economic recovery. Biden proposed the sweeping new $1.8 trillion plan in a speech to a joint session of Congress on Wednesday, pleading with Republican lawmakers to work with him on divisive issues and to meet the stiff competition posed by China. He also made an impassioned plea to raise taxes on corporations and rich Americans to help pay for what he called the "American Families Plan" in his maiden speech to Congress.
The Fed's doggedly dovish outlook and the White House's spending plans hampered the dollar, which traded just off nine-week lows. Oil prices extended gains on Thursday as bullish forecasts for a demand recovery this summer offset concerns of rising COVID-19 cases in India, Japan, and Brazil.
Apple delivered a blowout first quarter late Wednesday, sending its stock up 2.7% premarket, with sales jumping 54% fueled by 5G iPhone upgrades and the company adding that it would increase its existing share buyback program by $90 billion. Facebook also beat Wall Street expectations for both quarterly revenue and profit on Wednesday, prompting gains of over 7% premarket, helped by a surge in digital ad spending during the pandemic when consumers shopped online, along with higher ad prices.
USA Key Point
- USD/JPY contests 109.00 level again as the dollar keeps steadier on the session.
- Treasury yields move back up close to pre-FOMC highs.
- ECB's de Guindos: Inflation could be higher than 2% at the end of the year.
- USD/CAD looks poised to extend downside momentum, sellers to eye 2018 lows.
- Gold still not in a hurry to go anywhere as investor appetite remains weak.
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…
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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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