Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Equity markets ended on a lower note on Friday
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The NZD/JPY pair is now testing the Tenkan sen level. A break back below this level will lead the currency pair into fresh lows. Alternatively, an upward wave will trigger the market above the Kijun sen level and even higher towards the lower level of the Kumo.
Market View
The spreading of the Omicron variant of the COVID-19 virus across Europe has initiated renewed restrictions and renewed lockdowns. This weekend, the Netherlands entered national lockdown closing all non-essential shows until 14 January.
Equity markets ended on a lower note on Friday, recording a decline for the week. Friday’s rotations in sectors and styles were not as clear as the previous days but still some fly to safety in defensives while the fear index VIX was moving higher. Large cap stocks outperformed small cap and momentum stocks. Major indices in the United States closed as follows on Friday: Dow Jones down by -1.5%, S&P 500 -1.0% and NASDAQ -0.1%. New challenges occurring over the weekend and Asian markets are painted in red this morning. European and U.S. futures are indicating a negative opening of cash markets down 1-2%. Stoxx 600 is currently down -2.3%.
In the EM space the Turkish lira (TRY) continues to plunge this morning after President Recep Tayyip Erdogan reaffirmed during the weekend his commitment to lower rates. Currently the lira against the dollar trades at 17.40, while only a month ago was trading at 11.00.
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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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