Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Friday's markets were in red
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The GBP/JPY pair is trading near the lower level of the Kumo. Any decisive movement to the south will push prices to exit the cloud, attempting to retest the previous low. On the other hand, an upward wave would lead the exchange rate towards the upper level of the Kumo.
The new variant of the virus that got the name Omicron starts to be of concern. The variant is spreading in many countries and already there are confirmed or suspected cases in the UK, Belgium, Italy, Germany, the Netherlands, Australia, Hong Kong and Israel –just to mention a few.
In the equity space, Friday's markets were in red, and risk-off sentiment was evident across equities, bonds and commodities, as Covid spooked markets yet again. It was a classic risk off session, with cyclicals clearly underperforming and VIX spiking at 30. Energy, autos and banks were hit the worst, with sharp declines in the -4% to -5% range. Regionally, Europe was hit the worst while on the other side of the Atlantic, major indices closed as follows: Dow Jones -2.5%, S&P 500 down -2.2%, and NASDAQ -2.2%. US futures are rebounding this morning, but Asian markets remain in the -0.5% range.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?