Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EURUSD : further upside remains very likely
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 close to a full-time retracement area. Bullish pressure is growing during the last hours.
EU Market View
Asian equities traded somewhat mixed and only partially benefitted from last Friday’s rebound on Wall Street. Looking ahead, highlights include US NY Fed Manufacturing, BoE's Haldane, Vlieghe, Tenreyro, Fed's Bostic, Clarida, Kaplan speeches. European stock markets are seen edging lower at the open Monday, as investors weigh concerns over a rise in global inflation as well as disappointing Chinese economic data. Earlier Monday, data showed that Chinese industrial production grew 9.8% year-on-year in April, a healthy increase but lower than March’s 14.1%, and retail sales increased 17.7% in April year-on-year, below March’s 34.2% growth. The data showed that China’s economy, the second largest in the world, is continuing to grow but the recovery from the Covid-19 pandemic is uneven and still has a long way to go.
The dollar edged higher in early European trade Monday, with this safe haven supported by concerns over fresh Covid-19 outbreaks in some Asian countries. However, gains are small ahead of the minutes of the latest Federal Reserve meeting. A year ago, as the pandemic ravaged country after country and economies shuddered, consumers were the ones panic-buying. Today, on the rebound, it’s companies furiously stocking up.
European stock markets struggled last week after U.S. consumer prices jumped at the fastest rate since 2008, increasing worries that the Federal Reserve could be forced to start tapering its easy monetary policy earlier than guided. Policy makers, however, have laid out a number of reasons why they don’t expect inflationary pressures to get out of hand. Fed Governor Lael Brainard said recently that officials should be “patient though the transitory surge.” Among the reasons for calm: The big surges lately are partly blamed on skewed comparisons to the steep drops of a year ago, and many companies that have held the line on price hikes for years remain reticent about them now. What's more, U.S. retail sales stalled in April after a sharp rise in the month earlier, and commodities prices have recently retreated from multi-year highs.
EU Key Point
- US 10-year yields return to key 1.60% level on Fed's reassurance.
- Taiwan's stock market selling off again after a further spread of COVID-19 infections, tighter restrictions.
- New Zealand services PMI for April 61.2 (prior 52.4.
- China‘s ban on Australian coal seen extending into 202
- EUR/CHF: Bullish while above uptrend at 1.0905, eyes a breach of 1.1075.
- Gold Price Analysis: XAU/USD eyes additional upside towards $1880.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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.