Equity markets were very heavy yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now testing the lower level of the cloud…
EUR/JPY : touches 2 years highs in a bullish delirium
Information is not investment advice
Ichimoku Kinko Hyo
CAD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAU/USD: Gold facing some buying support the last hours and trading above 38.2% retracement area.
US Market View
Germany's economy could shrink by around 1.5% in the beginning of the year, the DIW research institute said on Wednesday, as lockdown measures to restrict coronavirus infections take a toll on Europe's biggest economy.
EUR/USD trades flat near 1.2150, having faced rejection at 1.2180 on Tuesday. The pair trades well within Tuesday's indecisive range. Lagarde's comments keep the EUR bulls from cheering Jerome Powell's dovish comments. German data awaited.
Absent another government spending push in Europe to match the "go big" drive of new U.S. President Joe Biden, markets suspect the European Central Bank (ECB) may be forced to push back with even more bond buying to calm the waters. ECB chief Christine Lagarde sent the first shot across the bows on Monday saying the central bank was "closely monitoring the evolution of longer-term nominal bond yields"
Market anxiety about the inflationary impact of the U.S. government's massive, planned spending boost is driving up U.S. Treasury yields and undermining the dollar. That risks stifling Europe's recovery with a stronger euro and relatively higher real borrowing rates, even though Europe's fiscal stimulus is dwarfed by Washington's $1.9 trillion plan.
USA Key Point
- US futures back to flat levels on the day as investors brush aside early pessimism.
- Franc meltdown continues as risk tones keep calmer in European trading.
- BOJ's Kuroda supports that bond purchases are for monetary policy purposes, not for the government.
- USD/JPY pushes higher in back-and-forth week so far.
- The Hang Seng suffers biggest daily drop since May last year amid HK's first trading tax hike since 1993.
Similar
EURGBP rose on dovish BoE
Ichimoku Kinko Hyo CHF/JPY: The CHF/JPY pair is now testing the upper level of the cloud…
The highlight for markets today will be the FOMC meeting
Ichimoku Kinko Hyo GBP/JPY: The GBP/JPY pair is now trading within the cloud…
Popular
Walmart earnings outlook
Walmart is one of the biggest retail corporations in the US, with $244 billion in total assets. Does it worth buying amid rising prices and supply concerns that shatter the world economy?
Japan's inflation is at 2%, but what about a weaker Yen?
Japan's inflation is set to reach 2% in April's reading, for the first time since 2015. But what about the weaker Yen?!
What to trade on May 16-20?
Last week brought a selloff in markets. Some assets reached the most crucial support levels and are likely to reverse in a short term. Be ahead of trends and make the most out of this week!
Choose your payment system
