Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD : Targets 1.25 area
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAG/USD: Silver continuous to stand below 23.6% retracement area. There is a consolidation momentum the last days.
EU Market View
Asian equity markets were mixed after failing to sustain the early momentum from the constructive mood on Wall Street. Asian tech and growth stocks rallied on Friday, following Wall Street's overnight lead, as investors tempered fears about hot inflation and the prospects of an early tapering of stimulus by the Federal Reserve.
The dollar hovered around recent lows on Friday and was set to notch a modest weekly drop as traders' concerns at taper talk in Federal Reserve minutes faded, though a pullback in commodity prices and nerves about virus outbreaks kept losses in check. The dollar has given back a bounce it made after a mention of possible future tapering discussions, in minutes from the Fed's April meeting, prompted fears of early rate rises. Investors now figure that any action remains a long way away and that the path might again be clear for a resumption of April's downtrend as the U.S. trade and account deficits weigh.
US President Biden’s administration has proposed a global tax on multinational corporations of at least 15%. European stock markets are seen opening largely higher Friday, continuing the strong gains from the previous session as optimism over the region’s outlook strengthens as it gradually gets to grips with the Covid-19 pandemic. Earlier, U.K. retail sales jumped 9.2% on the month in April, a substantial rise from the 5.1% increase the previous month, and indicative of consumers returning as shops gradually reopened.
Looking ahead, highlights include EZ, UK and US Flash PMIs, UK Retail Sales, Canadian Retail Sales, EZ Consumer confidence, Baker Hughes Rig Count, ECB’s Lagarde and de Guindos, Fed’s Kaplan, Bostic, Barking, and Daly speeches.
Oil prices edged higher Friday, recovering some lost ground after three days of selling as traders started to factor in the potential return of Iranian crude supplies. Iran and world powers have been in talks since April on reviving the 2015 deal which limited Iran’s nuclear program. These talks appear to be making progress after Iran's president said the United States was ready to lift sanctions on his country's oil, banking and shipping sectors.
EU Key Point
- UK April retail sales 9.2% vs +4.5% m/m expected.
- Moderna reportedly considering producing COVID-19 vaccine in Asiα.
- Germany reports 8,769 new coronavirus cases, 226 deaths in latest update today.
- Japan will not administer AstraZeneca vaccine - will continue to monitor clot cases.
- Some (small) USD strength showing up in Asia.
- Iran is readying a hike in its oil exports to "maximum capacity" within months.
- Japan's negative CPI result in April being blamed on plunge in mobile phone costs.
- Australia Retail sales for April, preliminary: 1.1% m/m (expected +0.5%).
- Fed's Kaplan spoke again (US Thursday) - repeated his call for talking about taper.
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
