Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD was little changed in the previous session
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair is now testing the upper level of the Kumo. A successful attempt to exceed this level will trigger the market to move higher. A failed attempt to exit the cloud will push prices lower.
European Market View
The first central bank meeting is that of Riksbank. It is expected that Riksbank will leave policy rates unchanged and maintain a fully flat rate path at zero.
In the equities space we saw a full-blown risk-off sentiment hitting the markets yesterday for a first in a very long time. Risk-off also went cross asset, as investors rotated into cash or bonds and sold off most sectors and stocks. S&P 500 dropped -1.7% while it fell by as much as -2.9% during the trading session, with as many as 450 out of 500 names where in the red. Other US indices such as the tech NASDAQ fell -2.2% and Dow Jones -1.8%.
Implied volatility spiked, with the VIX index just south of 30 intraday, before falling back to 26. In terms of sectors, energy, financials autos and materials were hit the worst. Interestingly, big tech did not prove much safety. Safe haven sectors such as utilities, health care and consumer staples coped best in this choppy environment. Sentiment appears to have stabilised this morning. Chinese markets are still closed for holiday, and newly opened Nikkei is doing a -1.7% catch-up but Hong Kong only -0.3%. US futures point to a rebound with futures nearly 1% higher.
In the FX space, EUR/USD was little changed while crosses like the EUR/GBP, EUR/SEK and EUR/NOK all rallied because of the risk sentiment.
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
It’s Time to Look at New Zealand
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.
The CAD vs. the World: Mid-Term Scenarios for the Currency
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
Fed Keeps Pushing USD to 2000s Highs
The US dollar index has all chances of reaching the 2000s high of 120.00.
Choose your payment system
