Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
NASDAQ Point a 3% Decline
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAU/USD: Gold is traded below the 50% retracement area with sellers gaining control.
US Market View
U.S. stock markets tumbled at the opening on Thursday as the Federal Reserve's warnings about a slow recovery from the pandemic forced a rethink on the outlook for earnings growth in the years ahead. Fed is forecasting 2.0% inflation in 2023 and 4.0% unemployment and saying rates will stay at 0% that year.
US Key Point
- US major stock indices open lower but off lowest premarket levels
- AUDUSD shows some risk off downside pressure ahead of stock opening
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.