Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/GBP : Target remains significantly higher for euro
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAU/USD: Gold facing a further consolidation below 38.2% retracement area. Bulls have returned recently.
US Market View
European stock markets edged lower Friday, ending the week on a negative tone as investors study a slew of corporate earnings, particularly from Daimler, and economic data releases. European markets suffered a negative handover from Wall Street, with the major U.S. indices all dropping around 0.9% late Thursday, their biggest slide in five weeks, on reports that Biden is set to propose almost doubling capital-gains tax for the wealthy.
That said, losses are small, helped by signs of an improving economic picture in Europe as a whole. French and German manufacturing PMI numbers came in better than expected, well above the 50 expansion threshold, while U.K. retail sales jumped 5.4% on the month in March, climbing 7.2% on the year, way ahead of expectations.
European Central Bank President Christine Lagarde assured the market on Thursday that pullbacks in the central bank’s emergency program were not under discussion despite its prediction of a strong rebound in the euro zone economy from mid-year.
The dollar weakened in early European trading Friday, sticking to narrow ranges as traders turn their attention onto next week’s Federal Reserve meeting following the conclusion of the European Central Bank get-together.
USA Key Point
- Dollar holds slightly softer on the session, US futures a touch higher.
- ECB and other major central banks to discontinue 84-day US dollar liquidity operations.
- US futures pare slight advance to start the session.
- UK March retail sales +5.4% vs +1.5% m/m expected.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.