Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Forex majors: short-term and long-term
Information is not investment advice
EUR/USD: a downswing looming
At the beginning of the virus hit, EUR/USD was in the zone of 1.10. By the end of 2020, it rose to 1.2350. Since then, it’s been going mostly downwards as the USD is gaining momentum with the recovering US economy. Currently, it trades around 1.20, and if the US economic optimism stays for another month or two, we are likely to see the pair challenge the tactical supports of 1.17 and 1.16.
GBP/USD: post-Brexit
From the depths of 1.20 at the beginning of the pandemic, this pair has been going upwards almost in a straight line to reach 1.42 in February. Since then, it dropped some of the gains and has been floating below 1.40. Pound’s offensive may have stopped due to the accumulating effect of Brexit as the UK is seeing a lower financial dynamic than before. Locally, 1.38 and 1.37 are the supports bears may be aiming at. If these get broken in the coming weeks, it may be a start of a whole new multimonth downswing back to 1.20.
EUR/GBP: bouncing upwards or five-year lows
While this pair dropped to 0.83 in the first part of 2020, it has been trading around 0.90 in the second part. However, it ceded most of the gains during previous months going down to 0.85 in April. That level turned out to be a tactical low that sent the currency pair into the upside. EUR/USD bounced off that level a month ago to reach 0.87 – this is the current resistance level. Currently, the pair is on the way downwards after bouncing off it a few days ago. If bears keep pulling, it may reach 0.86 and aim at 0.85 once again. In the larger perspective, the behavior of EUR/GBP in the coming weeks will indicate if it is going to re-take the gains made through 2020 or go further downwards to the five-year lows of 0.83.
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Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
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European Currencies Ahead of the Banks' Statements
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.
Will the FOMC Surprise the Markets?
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.
What awaits the Oil Market in February?
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.
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