Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Equities lower yesterday led by Europe
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The CHF/JPY pair is now heading to retest the previous low. Further bearish sentiment will push prices into fresh lows. Alternatively, a higher thrust of the market will lead the currency pair to reach the lower level of the Kumo.
The most important key driver for markets is the Russian invasion of Ukraine. So far, the cease-fire negotiations have not been successful, and the Western countries consider even tougher sanctions against Russia. A lot of focus on the Russian attack on the nuclear power plant in Zaporizhia which is the largest nuclear plant in Europe and tenth largest in the world. US President Biden and Ukrainian President Zelensky urged Russia to cease its' military activities in the area. The International Atomic Energy Agency said there were no signs of elevated radiation. Ukraine's state emergency service stated later this morning that the fire had been put out.
Equities lower yesterday led by Europe. Cyclicals, growth, and small cap stocks the main underperformers while the group of defensives actually rose in US.
Regarding figures, US jobs report for February is due out. A sharp drop in the unemployment rate means that the FED find themselves in a very awkward situation due to elevated geopolitical risk.
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.
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.