Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD is trading in the 1.1830 area
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The EUR/JPY pair is now testing the upper level of the Kumo. A failed attempt to move in the cloud will trigger the market above the Kijun sen and Tenkan sen levels, pushing the currency pair into fresh highs.
European Market View
After the weak US labour market report on Friday, markets will keep an eye on any hints on tapering from NY Fed President John Williams later this evening. Later this week, a host of Fed speakers are scheduled for public appearances and these are likely to guide the market ahead.
In the equity space, developed markets were mostly in the red yesterday, as growth took the lead in an uneventful session. Performance between cyclicals and defensives was thin, with both industrials and health care among the big decliners, and communication services and consumer discretionary among the better sectors. US indices were mostly lower with S&P 500 losing -0.3%, Dow -0.8% and NASDAQ 0.1%. Asian markets mostly muted while Nikkei225 is the exception as it continues to rebound.
In the currency market USD and NOK rose vis-à-vis CAD, AUD and NZD yesterday. EUR/USD fell further and this morning is trading in the 1.1830 area.
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.