Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
NZD/USD : extends gains to fresh three-week high.
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.
XAU/USD: Gold facing a further consolidation below 38.2% retracement area.
US Market View
U.S. stocks are seen drifting Wednesday, with investors cautious as the new earnings season starts in earnest, starting with the banking sector.
British Prime Minister Boris Johnson said on Wednesday he shared concerns over a growing lobbying scandal involving former leader David Cameron who tried to get ministers to help out the now failed supply-chain finance firm Greensill Capital.
Though Cameron's strategy ultimately failed, Johnson has launched an independent review to look at allegations that lobbyists have an "open door" to his government. The economic data slate includes March import prives, which will be of extra interest after CPIrose 0.6% on Tuesday, the largest gain since August 2012, while the Fed's Beige Book is expected to showcase improving economic conditions around the country.
There are also a number of Fed speakers due to discuss the economic outlook on Wednesday, including Chairman Powell, who is set to speak at an Economic Club of Washington. The greenback's fall came as U.S. bond yields dipped, thus reducing the currency's yield attraction, as solid demand for a 30-year bond auction trumped rises in consumer inflation
Oil prices pushed higher Wednesday, helped by the International Energy Agency joining OPEC in raising its forecasts for global oil demand this year, by an average of 230,000 barrels a day from its March forecasts.
USA Key Point
- US March import price index +1.2% m/m vs +0.9% expected
- The NZD is the strongest and the CHF is the weakest
- Pfizer vaccine supply to EU in Q2 to receive 25% boost to 250 million doses
- Goldman Sachs joins in with another earnings beat
- EU reveals strategy to raise €800 billion in debt for recovery fund, to be repaid by 2058
- Treasury yields hold slight bounce after yesterday's retreat
- ECB's de Guindos: Risks of withdrawing stimulus too early are higher than risks of keeping them in place
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.