Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD temporarily touched 1.19 on Friday
Information is not investment advice
Ichimoku Kinko Hyo
AUD/JPY: The AUD/JPY pair is now testing the upper level of the Kumo. An upward wave would lead the exchange rate to retest the previous top.
European Market View
The week starts quietly as it is a Labor Day in the US today, so markets will be closed.
US jobs report disappointed last Friday, with payrolls print at 235.000 for August. This was clearly an unwanted surprise for the FED which has been talking about tapering asset purchases at one of the upcoming meetings (e.g. in September). As it is almost very difficult to guess, which way the Fed will choose to interpret weak job creation, the impact on the dollar from expectations to future fed policy will also be very hard to predict in the near term. There is a real risk Fed may wish to sound a tad more dovish until jobs accelerate again.
In the equity front, Friday ended on a slightly weaker note, weighed down by the huge job miss. Tech and growth took the lead as markets discounted a dovish interpretation for Fed. Tech, communication services and health care were the winners for the day, while utilities, materials, industrials and financials sold off. S&P recouped the initial losses and ended unchanged, NASDAQ rose 0.2% and Dow Jones -0.2%. In Asia this morning, markets are up 1-2% led by Japan. US markets will be closed for holiday and futures only see small movements.
In the FX space, EUR/USD temporarily touched 1.19 on Friday after the job growth in US disappointed. The pair currently is trading about 30pps lower than the 1.1900 mark.
A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.