Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
NASDAQ posted fresh record closes
Information is not investment advice
Ichimoku Kinko Hyo
AUD/JPY: The AUD/JPY pair is now trading slightly above the cloud. An upward wave would lead the pair to eliminate the Tenkan sen and Kijun sen level, pushing the exchange rate to retest the previous top. Alternatively, a plunge of the market will lead the currency pair to enter the Kumo.
European Market View
This week's main event will be the FOMC later this week. It should be expected that the Fed will announce QE tapering and that it will start tapering immediately with a tapering pace of USD15 billion per month.
In the equities space, markets finished October quite strong as US stocks once again led market higher. NASDAQ posted fresh record closes and capped their fourth-straight week of gains. In terms of sectors, growth outperformed value for the fifth consecutive day. In U.S., Dow Jones ended higher by +0.3%, S&P 500 by +0.2% and NASDAQ by +0.3%. Positive sentiment continuing in Asia this morning led by Japanese equities. European and U.S. futures broadly higher this morning.
EURUSD lower than 1.1600 again, mostly on stronger dollar. As for GBP crosses, focus turns to the meeting of Bank of England.
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.