I know we've had quite an amazing run these past few month, with over 78% accuracy in our trade ideas and sentiments, and thousands of pips in profits monthly...
Inflation risks boost US dollar.
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver continuous to stand above 23.6% retracement area. Bearish pressure is growing after a strong US inflation number.
EU Market View
Asian equity markets were pressured following on from the losses in the US post-CPI. Asian shares slipped to seven-week lows on Thursday after a shocking rise in U.S. inflation bludgeoned Wall Street and sent bond yields surging on worries the Federal Reserve might have to move early on tightening. Asian markets were already on the backfoot this week amid inflation worries and a tech sell-off on Wall Street, and nerves were further jangled on Wednesday when Taiwan stocks tumbled on fears the island could face a partial lockdown amid an outbreak of the virus.
The dollar edged higher in early European trade Thursday, with the safe haven currency supported by concerns of an earlier than expected Federal Reserve response to inflationary pressures in the wake of worryingly large jump in U.S. consumer prices. The CPI rose 4.2% in April from a year ago, according to data released on Wednesday, well above consensus forecasts for 3.6% and climbing to its highest rate since the eve of the 2008 financial crisis. Benchmark 10yr U.S. Treasury yields rose to a five-week high above 1.70% overnight, increasing the appeal of dollar-denominated assets, but have since edged back down to 1.685%. The main driver of these dollar gains has been the surge in U.S. inflation, and the concern this will force the Fed to move away from its ultra-easy monetary policies sooner than its current guidance suggests. Rising prices and costs can crimp consumer demand and corporate profitability. They could also pressure the Fed to tighten monetary policy, which in turn could harm economic growth and stock valuations.
Looking ahead, highlights include US IJC, PPI, Banxico rate decision, BoE's Cunliffe, Bailey, Fed's Barkin, Waller, Bullard speeches.
EU Key Point
- Germany reports 17,419 new coronavirus cases, 278 deaths in latest update today.
- BOJ governor Kuroda attributes sharp rise in US CPI to base effects
- Japan's government is asking business to help with the vaccination program.
- The BOJ says its ready to extend pandemic relief beyond the September deadline if needed.
- Kuroda says the BOJ is implementing easing steps no other central bank is taking.
- Bank of Japan Governor Kuroda says Japan's economy is picking up as a trend.
- USD/JPY consolidates in a range near one-month tops, just above mid-109.00s.
- USD/CHF snaps three-day uptrend, looks to US data.
Futures for Canada's main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc's announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system...
Investor confidence in the global financial system has been shaken by the collapse of Silicon Valley Bank and Credit Suisse. As a result, many are turning to bearer assets, such as gold and bitcoin, to store value outside of the system without...
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus