Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Equity markets traded lower again yesterday
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The NZD/JPY pair is now trading below the cloud. Any decisive movement to the south will push prices down to fresh lows. On the other hand, an upward wave would lead the exchange rate to enter the Kumo.
Equity markets traded lower again yesterday but, in a bit, more volatile session where both the U.S. and Europe were in positive territory during the day. Better performance in cyclical stocks yesterday and small cap was holding up better as yields finally took a pause on back of the US CPI number. Volatility Index VIX a tad lower as well.
Asian markets are higher this morning with relative strong gains in both Japan and South Korea. US futures are higher while European once are lower this morning.
In the FX space the US CPI brought setback to USD proved short-lived with the dollar index posting new highs and EURUSD reaching new lows just north of 1.08.
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.