Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Dollar gains on higher yields
Information is not investment advice
Ichimoku Kinko Hyo
CAD/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 continuous to stand below 23.6% retracement area. Bearish pressure is growing again as bulls cannot defend bears.
US Market View
U.S. stocks are seen opening lower Monday, with the highly valued tech sector likely hard hit as investors fret over higher Treasury yields and potential inflation in the wake of the Covid-19 relief bill passing through the Senate. Both Federal Reserve Chairman Powell and Treasury Secretary Yellen have downplayed the rise in long-term Treasury yields, saying they are a sign of expectations for a stronger recovery, not of increased inflation concerns.
President Joe Biden's passed $1.9 trillion covid relief plan on Saturday, one of the largest stimulus packages in U.S. history. The bill will now move to a vote in the House on Tuesday, and then to Biden, who hopes to sign the bill before enhanced jobless benefits expire on March 14. This followed Friday’s surge in US employment, and adds to fears that this package will overheat the economy, leading to inflation and to the Federal Reserve tightening policies more quickly than had previously been envisaged.
The price of oil spiked above $70 after Houthi rebels in Yemen launched a strike against various oil industry facilities in Saudi Arabia. The news reassured a market that is already at elevated levels, prices having hit their highest in over a year last week after OPEC and its allies surprisingly decided against a rise in output in April.
US Key Point
- Oil turns to losses as early gains fizzle.
- US equities look set for another bumpy day later.
- BOE's Bailey supports that negative rates contingency planning implies nothing about our intentions in that direction.
- AUD/USD nears the Friday low as dollar gains extend.
- USD/JPY keeps more buoyed as Treasury yields hold higher so far on the day.
- GBP/USD consolidates in a range below mid-1.3800s.
- USD/CAD edges higher toward 1.2700 as WTI retreats from multi-year highs.
- BoE's Bailey supports that we will see a rise in inflation in the short term.
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…
Popular
It’s Time to Look at New Zealand
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
The CAD vs. the World: Mid-Term Scenarios for the Currency
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
Fed Keeps Pushing USD to 2000s Highs
The US dollar index has all chances of reaching the 2000s high of 120.00.
Choose your payment system
