Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD climbed towards 1.07
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The CHF/JPY pair is now trading within the Kumo. Should the pair manage to withhold the sellers’ pressure, CHF/JPY will climb towards the upper level of the cloud. Alternatively, further bearish sentiment will push prices deeper in the Kumo.
Equities moved higher yesterday Monday, with the banking sector, standing out, rising 3% globally. The outperformance in banks yesterday more or less driven by JP Morgan. This should hardly come as a surprise after yields have been skyrocketing and credit demand has been soaring in 2022. Dow Jones closed +2.0%, S&P 500 +1.9% and NASDAQ +1.6%.
Wall Street euphoria was not carried over to Asia this morning, where markets are led lower by China. US and European futures are lower this morning with growth/tech names dragging down.
In the FX space JPY and USD were the biggest losers. EUR/USD climbed towards 1.07.
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.