Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EURUSD is little changed this morning
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair is now trading slightly below the Tenkan sen level. An upward wave would lead the pair to eliminate Tenkan sen and Kijun sen level, targeting the previous top. Alternatively, a plunge of the market will lead the currency pair to find support at the upper level of the Kumo.
The US President Joe Biden and leaders of the G7, NATO and EU are meeting in Brussels tomorrow and they are expected to announce a new round of sanctions against Russia.
The positive correlation between yields and equities continued, with equities posting gains again on Tuesday. Value names outperformed growth by around 0.5pp globally despite the US 10y breaching 2.40%. Both financials, consumer discretionary and communication services were leading. Dow Jones advanced by 0.7%, S&P500 ended higher 1.1% and NASDAQ 2%. Asian markets are continuing its rebound and US futures point slightly upward.
In the FX space EURUSD is little changed this morning, while USD/JPY continue to see upwards pressure and is trading above 120.50.
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.