Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
GBP/USD: eyes early April highs and sixth straight day of gains
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAU/USD: Gold facing a further sell off below 50% retracement area. Bears have returned recently.
US Market View
The SP500 and the Dow were set to slip from record levels on Monday as investors looked to the first-quarter earnings season for hints that corporate America was recovering from the impact of the COVID-19 pandemic. A recent pullback in the benchmark 10-year bond yield from 14-month highs has renewed interest in richly valued technology stocks, while a string of strong economic data has also helped push the S&P 500 and the Dow to record levels.
World shares traded near record highs on Monday, as markets were generally upbeat about the prospects for a global economic recovery from COVID-19, ahead of a busy week for earnings. MSCI world equity index, which tracks shares in 49 countries, was flat on the day, having come close to but not surpassed Friday's record high. MSCI's main European Index was up 0.1%.
The European Central Bank meeting on Thursday will also be in focus this week. ECB President Christine Lagarde said last week that the euro zone economy is still standing on the "two crutches" of monetary and fiscal stimulus and these cannot be taken away until it makes a full recovery.
USA Key Point
- Cable extends gain to 100 pips as Friday's reversal extends.
- Canada March housing starts 335K vs 255K expected.
- US futures keep lower ahead of North American trading.
- Bundesbank says German economic output decreased in Q1 2021.
- Treasury yields keep lower so far on the session.
- AUD/USD climbs to one-month high as dollar is seen weaker across the board.
- Gold continues march towards $1,800, capitalises on weaker dollar and softer yields.
- BOE announces joint creation of central bank digital currency taskforce with UK Treasury.
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.
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.