Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Dollar keeps a touch firmer but all eyes remain on the Fed
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
Fibonacci Levels
XAU/USD: Gold facing a significant appreciation and it is trading near a 23.6% retracement area. Bulls have returned recently.
US Market View
U.S. stocks are seen opening largely unchanged Tuesday, remaining near record levels, ahead of the start of the latest two-day FED meeting. The Federal Reserve’s two-day policy meeting starts later Tuesday, and while the central bank is not expected to take any action this time round it could hint at its future tapering plans given the recent surge in consumer prices. Also due for release Tuesday is the PPI for May, a particularly relevant number given the focus upon inflation. Year-over-year, the PPI is expected to have spiked by 6.3%, the largest increase since the agency started tracking the data in 2010. It had jumped 6.2% on a yearly basis in April. Crude oil prices headed higher Tuesday, remaining near multi-year highs, as the immediate threat of additional supply from Iran returning to the market dwindled.
A lot of attention is going to be on the start of the two-day Federal Reserve meeting, but there’s also a lot of important economic data to study Tuesday.
The Fed has repeatedly said that near-term price spikes will not translate into lasting inflation, but prices paid by companies to producers are expected to continue rising, jumping by 0.6% in May from the levels in April, matching the increase from the prior month, when released at 8:30 AM ET.
It may have taken the threat of China eating into their markets, but the U.S. and the European Union have finally agreed to end their 17-year dispute to Airbus and Boeing.The deal sets the stage for a new era of transatlantic cooperation over state aid at a time when China is vying to displace the Boeing-Airbus civil aircraft duopoly, with the state-sponsored aerospace manufacturer Commercial Aircraft Corp. of China, or Comac, on track to become a legitimate rival in global planemaking by the end of the decade.
USA Key Point
- Cable starts to crack as dollar keeps firmer on the da
- von der Leyen confirms that EU, US have resolved dispute over aircraft subsidies
- EU, US reportedly to extend aircraft tariff suspension by another 5 year
- Eurozone April trade balance €9.4 billion vs €15.0 billion expecte
- Dollar having a bit of a mixed showing so far on the day.
- ECB's Rehn: ECB did not discuss issue of transitioning away from PEPP.
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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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