Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
France is getting another dose of stimulus, with 100 billion euros
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair is testing the Kijun Sen level. An upward wave would lead the pair towards the Tenkan Sen and even higher. The bullish scenario is still in force.
European Market View
The U.S. Centers for Disease Control and Prevention has told states to prepare for a Covid-19 vaccine to be ready by Nov. 1, a date that suggests the federal government anticipates a vaccine will become available just days before President Donald Trump stands for reelection.
France is getting another dose of stimulus, with 100 billion euros of shock and awe to get the economy moving again after the pandemic-induced lockdowns of the spring. The plan being announced today is focused on boosting supply and encouraging investment, and it includes a 10-billion-euro tax cut for industry next year. President Emmanuel Macron says the strategy is one of the biggest in Europe relative to the size of the economy, which shrank almost 14% in the second quarter.
U.S. equities set a fresh all-time high, amid signs that the global rally is broadening into other sectors. Several of this year's big tech winners, including Apple Inc., Zoom Video Communications Inc. and Tesla Inc. fell, with the last hit by news that Scotland-based fund manager Baillie Gifford had cut its holding in the electric-car maker.
In FX the dollar added to gains as the euro slid further below $1.19.
Chicago Fed President Charles Evans discusses the U.S. economy and monetary policy, while Bank of England Governor Andrew Bailey speaks on the future of cryptocurrencies at a different event.
USD/RUB rose as Germany lashed out against Russia. The rise could reflect an increased risk of tightening of Western sanctions on Russia. The German government said that tests showed that the Russian opposition candidate Navlny was poisoned with nerve agent novichok and that the government would seek "joint reaction" to the attack. The statement is significant since Germany traditionally has been the mediator between the West and Russia.
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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.