Equity markets were very heavy yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now testing the lower level of the cloud…
GBP/USD : Can sterling surge above 1.40?
Information is not investment advice
Ichimoku Kinko Hyo
CHF/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 continues to flirt with session lows and disappoints once more many buyers.
US Market View
U.S. stocks are seen opening higher Wednesday, amid growing optimism that the country’s increase in vaccination program will lead a prompt and strong economic recovery. President Biden announced late Tuesday that the U.S. will have sufficient Covid-19 vaccines to vaccinate every adult by the end of May, two months ahead of schedule. This comes with President Joe Biden’s $1.9 trillion Covid relief bill now in the Senate, after having passed through the House of Representatives.
All eyes in USA remain in inflation numbers. The key supporting factors to US inflation in 2021 include the higher growth of personal consumption, capital spending, housing, and inventory builds of which these sectors had been the main contributors to the US’ recovery process last year. The US savings rate is expected to normalize as US consumers resume their social and travel activities and increase spending. If the consumer spending surge is formidable, then so will be the inflation risk.
UK Chancellor of the Exchequer Rishi Sunak is set to extend the government's successful furlough scheme through September, in a step that would boost the British economy. However, corporation tax rises remain a mystery. So far, GBP/USD has been able to advance thanks to some calm in markets.
Gold has sold off to the 55-month moving average at $1706 and currently we cannot rule out further slippage towards the $1650.
USA Key Point
- UK's Sunak expects economy to return to pre-COVID levels in the middle of next year.
- Dollar steady, yields higher.
- Dollar creeps a little higher ahead of North American trading.
- Bundesbank's Weidmann supports that German economy strong enough to cope with longer lockdowns.
- ECB reportedly said to see no need for drastic action to combat rising bond yields.
- Japanese government set to extend Tokyo state of emergency until 21 March.
- Germany February final services PMI comes at 45.7 vs 45.9 expected.
- Tokyo Olympics reportedly plans to not allow overseas spectators.
- UK finance minister Sunak to announce the budget later today.
- XAU/USD flirts with session lows.
- USD/JPY hits 107.00 mark for the first time since August 2020.
- AUD/USD eases from daily tops, holds above 0.7800 ahead of US data.
Similar
EURGBP rose on dovish BoE
Ichimoku Kinko Hyo CHF/JPY: The CHF/JPY pair is now testing the upper level of the cloud…
The highlight for markets today will be the FOMC meeting
Ichimoku Kinko Hyo GBP/JPY: The GBP/JPY pair is now trading within the cloud…
Popular
Walmart earnings outlook
Walmart is one of the biggest retail corporations in the US, with $244 billion in total assets. Does it worth buying amid rising prices and supply concerns that shatter the world economy?
Japan's inflation is at 2%, but what about a weaker Yen?
Japan's inflation is set to reach 2% in April's reading, for the first time since 2015. But what about the weaker Yen?!
What to trade on May 16-20?
Last week brought a selloff in markets. Some assets reached the most crucial support levels and are likely to reverse in a short term. Be ahead of trends and make the most out of this week!
Choose your payment system
