Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
European Equities Open Lower
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAU/USD: Gold stands above 61.8% retracement area and seems that sellers return powerful.
EU Market View
Treasury Secretary Mnuchin, after speaking with House Speaker Pelosi, said stimulus talks are still far apart and it is difficult to get anything done before the election but will keep trying. Looking ahead highlights from macroeconomic calendar include US Import/Export Prices, Initial Jobless Claims and Philadelphia Fed Manufacturing Index, European Council Summit, ECB's Lagarde, Fed's Kaplan, Kashkari and Quarles, BoE's Cunliffe, supply from Spain, France and US, OPEC+ JTC Meeting, earnings from Morgan Stanley
EU Key Point
- China says will take countermeasures if the US insists on sanctions to banks over Hong Kong crackdown
- AUD/USD slumps to fresh session low on softer risk mood, key support levels in focus
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.