Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EURGBP moved somewhat lower
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The EUR/JPY pair is now trading within the Kumo. An upward wave would lead the echange rate above the upper level of the cloud, with immediate target the previous peak. On the other hand, a failed attempt to move higher will push prices to find support at the lower level of the cloud.
European Market View
COVID-19 cases are on the rise again in different parts of the world and countries are taking measures to deal with the problem. After rising contaminations, the Netherlands has decided to enter a three-week partial lockdown forcing bars, restaurants and supermarkets to close at 20.00 and non-essential stores to close at 18.00. Also, spectators will be banned from sporting events and people are being urged to work from home. This illustrates the rising risk of new lock-down measures being put in place in developed countries. Also, Austria and Germany have issued tougher measures.
Possibly the next 3-6M will be challenging in Europe and in the US and could expect many countries will re-introduce (or tighten) some of the soft measures like face mask requirements and COVID-19 green pass.
In the equities space last week, we saw both defensives/cyclicals and growth/value among winners- and losers. On Friday, preference reversed for the week, with growth names generally outperforming. Communication services and tech were among the leaders, while value defensives such as energy, utilities and consumer staples lagged behind. Asian markets are mixed this morning, despite the strong Chinese macro numbers. US futures slightly higher.
In the FX space Friday’s session was generally characterised by modest USD gains and both EURUSD and EURGBP moved somewhat lower.
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?