Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/JPY: bearish sentiment
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAU/USD: Gold continues to stand below the 23.6% retracement area. There is a clear indecision between bulls and bears.
US Market View
Brexit risk is back on the radar after a report that the U.K. government is preparing new legislation that would make the continuation of smooth trade with the EU after the end of this year impossible. With U.S. markets closed for the Labor Day holiday, the focus Monday was on Asia and Europe, which largely went their separate ways.
Chinese indexes fell by 2.7% after reports suggesting that the U.S. is looking to impose sanctions on chipmaker Semiconductor Manufacturing International, further tightening restrictions on the Chinese high-technology industry.
US Key Point
- Boris Johnson speech ahead about Brexit negotiations
- The JPY is the strongest and the GBP is the weakest as the European afternoon session begins.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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.