Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Higher inflation numbers helps US dollar
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
XAG/USD: Silver continuous to stand above 50% retracement area. Silver has entered a consolidation phase
EU Market View
European stock markets are seen opening lower Wednesday, as a jump in U.S. inflation raised concerns the Federal Reserve could tighten its ultra-easy monetary policies sooner than previously expected. European stocks slipped from peaks on Wednesday, as the global mood soured on increasing concerns about inflation, while travel stocks dropped on worries about the Delta variant's spread in the continent.
The dollar edged lower in early European trade Wednesday, handing back some of the previous session’s sharp gains after a jump in U.S. inflation raised expectations of an early move by the Federal Reserve to tighten monetary policy.
British inflation jumped further above the Bank of England's target in June when it hit 2.5%, its highest since August 2018 and up from 2.1% in May, putting the focus of the BoE's plan to keep its huge stimulus programme in place.
Official data showed higher prices for food, fuel, second-hand cars, clothing and footwear all pushed inflation up last month as the economy bounced back from its lockdown slump, the Office for National Statistics said.
Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell are slated to discuss the hot U.S. housing market and the risks it could pose to the financial system at a meeting with fellow regulators on Friday.
The aim of the closed-door session: To make sure the U.S. is not vulnerable to a crisis akin to the one it suffered more than a dozen years ago, when the bursting of a property-price bubble drove top banks to the brink of insolvency and the economy into a deep recession.
EU Key Point
- AUD/NZD targets May low after RBNZ policy decisio
- Japan May final industrial production -6.5% vs -5.9% m/m preli
- NZD/USD higher after the RBNZ tilts more hawkish than was expected.
- Coronavirus - Sydney to get a 2-week lockdown extension (at least) - announcement incomin
- Singapore preliminary Q2 GDP -2.0% q/q (expected -1.8%).
- Reuters Tankan report for July, manufacturers sentiment improved, services drop.
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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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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.
What awaits the Oil Market in February?
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.
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