Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Equity markets kept declining on Tuesday
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The NZD/JPY pair is trading between the Tenkan sen and Kijun sen level. An upward wave would lead the rate above the Tenkan sen level, targeting the previous peak. A drop of the market below the Kijun sen level will push prices to find support at the upper level of the Kumo.
Equity markets kept declining on Tuesday, driven mostly by hawkish tone from the Fed and gloomy vaccine outlook from a major vaccine company. Cyclicals held up the best, especially long duration/growth. Tech, autos and retail were among the best sectors, while telecom and utilities sold off -3% each. Major indices such as the S&P500 and Dow Jones closed down -1.9% while NASDAQ -1.6%. The sentiment is reversing in Asia this morning though and US futures have turned positive.
In FX space EURUSD reversed some of the recent gains and risk sensitive currencies such as NOK or the SEK came under pressure. The market volatility this week underlines the market uncertainty that gets created by the combination of Omicron, Fed rhetoric and recent data surprises like European inflation.
A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession.
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.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.