Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD moved back below 1.1900
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair is trading within the cloud. An upward wave would trigger the market to exit the Kumo, leading the pair into higher ground.
European Market View
In terms of financial data today, the most important release the U.S. ISM manufacturing index. On Thursday will be the Bank of England meeting, and finally on Friday the US nonfarm payrolls report as the FOMC. Analysts expect a bit less than one million new nonfarm payrolls.
In the equities space risk appetite is picking up again this morning. Most major Asian equity indices are trading in green and US/European equity futures are up by roughly half a percent this morning.
In the FX space, after a Fed induced relief rally to reflation sensitive currencies Friday marked a reversal to USD strength and Scandi weakness. EUR/USD moved back below 1.1900.
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.