Equity markets were very heavy yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now testing the lower level of the cloud…
Profit taking across risky assets favors Japanese Yen
Information is not investment advice
Ichimoku Kinko Hyo
USD/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 below 38.2% retracement area. Bearish pressure is growing again after a risk averse reversal.
EU Market View
Asian equity markets began the week mixed as the region took its cue from the indecisive performance last Friday stateside. European stock markets are seen opening lower Monday, weighed by plans for further lockdowns to combat a third wave of Covid-19 cases, while investors also watch events in Turkey closely. President Recep Tayyip Erdogan’s surprise decision over the weekend to replace the hawkish central bank governor Naci Agbal with Sahap Kavcioglu. The move came two days after a sharp rate hike aimed at controlling inflation near 16% and supporting the lira, and has since seen the Turkish currency weaken almost 12% against the dollar, the sharpest move since August 2018.
Germany is the latest European country to consider extending restrictive measures, with a draft proposal calling for the current lockdown to be extended into a fifth month. The number of new Covid-19 cases has surged since restrictions were eased three weeks ago.
U.S. stocks on Tuesday will mark the one-year anniversary of the market low as the spread of the COVID-19 and government lockdowns began to crush economic activity, before massive government and central bank stimulus plus the development of vaccines fueled a stunning, if uneven, rebound
Looking ahead, highlights from macroeconomic calendar include ECB asset purchases, ECB's Lane, Schnabel, Fed's Powell, Barkin, Daly, Quarles, Bowman.
EU Key Point
- Turkish lira pares some losses ahead of European trading.
- Turkish finance minister pledges no retreat from free market mechanism.
- Germany reports 7,709 new coronavirus cases, 50 deaths in latest update today.
- Fed's Barkin supports that US economy may be on the brink of full recovery.
- Bank of Japan Governor Kuroda says his 2% inflation target is helping stabilize FX rates.
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