Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD : Bulls gain control once more above 1.22
Information is not investment advice
Ichimoku Kinko Hyo
ΑUD/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 continuous to stand above 23.6% retracement area. Bullish pressure is growing during the last days and it seems that bulls have decided to send price higher.
US Market View
U.S. stocks are seen opening lower Thursday, on course for the fourth straight day of losses amid worries about future Federal Reserve policy as well as volatility in the cryptocurrency prices. Investors have been digesting the minutes from the April Federal Reserve meeting which suggested that some FOMC members were considering voting for tapering the central bank’s asset purchase programs in upcoming meetings. U.S. stock index futures fell for the fourth session on Thursday following signs the Federal Reserve policymakers discussed tapering of bond purchases last month, while investors looked to weekly jobless claims numbers.
Worries that the Fed may begin to rein in its ultra-easy monetary policies fairly promptly because of resurgent inflation have weighed on the stock market of late. The Nasdaq Composite, which is dominated by high-growth tech stocks, is down almost 5% in May so far. It’s also on course for its fifth consecutive down week, a run that hasn’t been seen since October/November of 2012.
Investors will also keep an eye on the weekly jobless claims to gauge the pace of labor-market recovery. New claims for unemployment benefits are expected to total 450,000, a new post-pandemic low, a drop from last week’s 473,000.
Oil prices weakened Thursday as traders digested the prospect of more supply entering the market. This follows Iranian President Hasan Rouhani claiming that a framework agreement had been reached on restoring the 2015 UN-backed deal limiting its nuclear programs, which would allow his country to restart exporting crude.
US Key Point
- ECB's Lane: Supply bottlenecks causing price rise is not real inflation.
- BOE's Cunliffe: UK house price strength during the recession is 'striking’.
- Risk still a little wobbly so far on the day.
- Dollar on the backfoot to start the session.
- USD/JPY keeps the red near session lows, below 109.00 mark ahead of US data.
- GBP/USD: Virus variants concerns to hobble sterling.
- NZD/USD clings to modest recovery gains, trades below 0.7200.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
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European Currencies Ahead of the Banks' Statements
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.
Will the FOMC Surprise the Markets?
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.
What awaits the Oil Market in February?
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.
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