Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Equity markets were nervous yesterday
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair is trading between the Kumo and the Tenkan sen level. An upward wave would lead the exchange rate to exceed the Tenkan sen and Kijun sen level, targeting the previous peak. Alternatively, any decisive movement to the south will push the pair to hit the upper level of the cloud and even enter into it.
Equity markets were nervous yesterday as investors were trying to figure out whether renewed macro acceleration will result in overheating and ultimately make monetary policy makers tighten earlier and faster. At the end of the day, the optimism took over and equities inched marginally higher. In the US, stocks were lifted by tech and growth sectors while defensive led the markets in Europe. Major indices on the other side of the Atlantic ended as follows: Dow Jones marginally lower -0.02%, S&P 500 +0.3%, and NASDAQ +0.4%. Asian markets are mostly higher this morning. European and U.S. futures are positive as well.
In the FX front, EURUSD went sub 1.12 yesterday, pulled lower by strong US data and speculations of more restrictions across Europe. In the Scandies, Riksbank is meeting today, which is a potential market mover for the SEK.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?