Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EURGBP rose on dovish BoE
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The CHF/JPY pair is now testing the upper level of the cloud. A successful attempt to exit the Kumo will fuel the pair towards the previous top. On the other hand, a plunge of the currency pair will push the market to test the lower level of the cloud.
After a rally in equities on Wednesday, markets plunged yesterday by between 4% and 5%. Equities came under a lot of pressure just at the opening bell, reversing the post-FOMC rally. All sectors were notably lower, but growth names were the standouts with tech, cars and semiconductors slaughtered. Cyclicals underperformed defensive stocks in a massive scale, as energy, consumer staples and utilities held up very well. Dow Jones closed lower -3.1%, S&P500 -3.6% and NASDAQ -5.0%. US futures are flat this morning.
As equities sold off broadly, yields rose and EURUSD fell back near 1.05. EURGBP rose on dovish BoE.
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?