Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD rebounded back towards 1.16
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The NZD/JPY pair is surging into fresh highs. Further bullish sentiment will fuel the pair even higher. A reversal movement will bring the currency pair into a correction phase.
European Market View
In the equities space risk appetite returned at full strength on Thursday with most markets were trading significantly higher. The inflation trade reversed and in its place growth and long duration led the gains. In the other side of the Atlantic, S&P500 closed higher by 1.7%, Dow Jones jumped 1.6% and the technology index NASDAQ 1.7%. Besides growth intense sectors (tech, communication services), materials was the standout as commodity prices are rallying. Implied volatility dropped substantially, with VIX Index now at 18 which is the lowest level since September. The sentiment is continuing into this Friday, with strong gains in Asia and US futures higher.
In the FX space USD reversed lower on broad basis past couple of days. EUR/USD rebounded back towards 1.16 and GBP/USD to around 1.37. On the exotics, it’s worth noting that the USDTRY is well above the 9.00 mark which makes the TRY the worst performing currency in 2021.
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…
Popular
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.
Will USDJPY slide lower in 2023?
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Choose your payment system
