Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD is very bullish in the long-term
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver is struggling to move higher and it is trading on the 23.6% retracement area.
EU Market View
Asian equity markets traded with a non-committal tone as participants reflected on the choppy price action stateside. Looking ahead, highlights from macroeconomic calendar include UK retail sales, Eurozone consumer confidence, ECB's Lagarde, Fed's Kaplan, Barkin, George speeches. Investor sentiment was also hit by data that showed COVID-19 hospitalisations across the United States jumped by nearly 50% in the last two weeks, threatening the recovery of the world's largest economy as cities and states began to impose lockdowns.
California on Thursday imposed a curfew on social gatherings and other non-essential activities in one of the most intrusive of the restrictions being ordered across the country to curb an alarming surge in infections. All three major US stock indexes, however, got a healthy boost overnight after Senate Democratic Minority Leader Chuck Schumer said Republican Majority Leader Mitch McConnell had agreed to revive talks to craft a new fiscal relief package.
EU Key Point
- UK October retail sales come at +1.2% vs -0.3% m/m than expected
- ECB president Lagarde to speak later in the session
- Germany reports record 23,648 new coronavirus cases in latest update today
- Hong Kong to do mandatory COVID-19 testing for those showing symptoms
- Japan's Kagawa prefecture to cull 850,000 chickens after bird flu outbreak
- US hits a record daily high for COVID-19 cases with 185,000 new infections Thursday
- Georgia to certify Biden as winner of the state on Friday, Michigan and Pennsylvania to follow on Monday
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.
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.