Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
GBP is the strongest and the AUD is the weakest before FOMC
Information is not investment advice
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
Fibonacci Levels
XAU/USD: Gold facing a further weakness the last hours and trading near a full retracement area. Gold remains weak before the important FOMC decision.
US Market View
U.S. stocks are seen mixed in tight trading ranges Wednesday, with the Federal Reserve set to conclude its two-day meeting later in the session. The central bank is expected to keep rates unchanged and its $120 billion pace of monthly bond purchases on hold. Of more interest will be its updated economic predictionsand its predicted path of interest rate movements going forward. In addition, the Fed will likely say whether it's extending a key exemption on bank capital requirements that could have far-reaching consequences for the bond market.
Rises in Treasury yields caused largely by bets the central bank will have no option but to step up bond buying as the pace of inflation is set to accelerate have been a key factor influencing the movement in stocks in recent weeks, specifically the tech sector, with higher rates forcing a shift into value stocks from growth.
Oil prices weakened Wednesday, after the warned that global demand won’t return to pre-pandemic levels until 2023, and growth will be subdued thereafter.
USA Key Point
- Treasury yields continue to climb ahead of the Fed.
- Japan reportedly making final preparations to end Tokyo state of emergency.
- Treasury yields nudge a little higher, but it will all come down to the Fed today.
- GBP/USD Price Analysis: Struggles to find acceptance above 100-hour SMA.
- EUR/GBP to break below the key 0.8520 support.
- AUD/USD trades in lower half of weekly range below 0.7750, eyes on FOMC.
- Euro area annual Core CPI remains steady at 1.1% as expected.
- USD/JPY: Positive phase could end below 108.50.
- Merkel's party slides in poll as anger grows over virus management.
- Korea: No Reason To Stop AstraZeneca Vaccine
- EURUSD stays below its 200-hour MA.
- US Housing starts for February 1421M vs 1560M than estimate.
Similar
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
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
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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.
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.
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