Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Dollar Holds Mildly Weaker
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading much below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAG/USD: Silver during the last hours is trading higher close to the key retracement area of 38.2%.
US Market View
U.S. stock markets are indicated to open higher on Friday at the end of a topsy-turvy week in which the initial euphoria on finding an effective vaccine against Covid-19 has buckled under the weight of the bleak short-term outlook. Overnight, Chinese stocks had fallen after the Trump administration issued a new blacklist of companies deemed to be facilitating the Chinese military. U.S. entities will be banned from investing in the companies.
European markets were mixed, supported by confidence in more stimulus from the European Central Bank but held back by growing doubt over the ratification of the 750 billion-euro EU Recovery Fund.
The number of new infections of Covid-19 in the U.S. hit 150,000 for the first time, as cities and states moved at various speeds to contain the latest wave of coronavirus. China beat the Republican Party to congratulating Joe Biden on his election victory, nearly a week after the counting process all-but confirmed the results of Tuesday’s vote.
US Key Point
- German government spokesman says that no easing of virus restrictions is possible yet
- Equities climb higher in European morning trade
- ECB's de Cos supports that upcoming macroeconomic projections in December likely to be revised downwards
- Italy reportedly set to extend regional lockdown system beyond 3 December
- ECB's Schnabel supports that ECB is going to be there for as long as it is necessary
- GBP/USD still playing within the near-term range
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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.