Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD : to resume its downfall after another dead-cat bounce
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAG/USD: Silver continuous to stand below 38.2% retracement area. There is a balance between bulls and bears the last hours.
EU Market View
Asian equity markets traded negatively following the tech sell-off in the US where the Nasdaq dropped 3% amid a jump in yields. European stock markets are seen opening largely lower Friday, following a sharp selloff in the tech sector on Wall Street while investors also fret about the increase in Covid-19 cases throughout the region. The tech index nasdaq closed 3% lower on Wall Street Thursday after a spike in U.S. bond yields on the back of the Federal Reserve’s dovish message prompted worries about owning these extremely highly-valued stocks that are likely to take a long time to generate meaningful amounts of cash.
The yield on benchmark 10yr Notes stood at 1.7% Friday, after spiking late Thursday to 1.75%, the highest since early 2020, a day after the Federal Reserve raised its growth and inflation forecasts but stated it would maintain its very accommodative monetary policies through 2023.
Looking ahead, highlights from macroeconomic calendar include Canadian retail sales, US-China meeting in Alaska, ECB's Panetta, WHO COVID-19 AstraZeneca update.
EU Key Point
- BOJ's Kuroda: Does not think current FX moves deviate from fundamentals.
- Germany reports 17,482 new coronavirus cases, 226 deaths in latest update today.
- USD/JPY sees not much to work with following BOJ policy decision.
- Us officials says discussions with China were substantive, serious and direct.
- Oil has steadied in Asia somewhat after its huge fall Thursday US time.
- Canada says the benefits of the AstraZeneca vaccine outweigh the risks.
- BOJ’s Kuroda: Too early to debate exit from stimulus policy.
- GBP/USD holds 1.3900 despite fears of UK’s vaccine shortage.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?