Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Risk aversion stays the course so far on the session and before ECB
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAG/USD: Silver facing a significant weakness and it is trading near above 50% retracement area.
US Market View
U.S. stock markets and bond yields are set to open sharply lower as investors unwind previous bets on strong growth and relatively high inflation continuing into the medium term. The delayed 2020 Summer Olympic Games will take place without spectators, after Prime Minister Yoshihide Suga declared emergency for the prefecture of Tokyo due to rising cases of Covid-19.The decision had been widely expected, as new infections in the Tokyo prefecture have been rising for nearly a month and hit their highest level since mid-May on Wednesday. Japan has been slow to vaccinate its population so far, with barely a quarter of the population receiving even one jab.
The European Central Bank set a new inflation target on Thursday and claimed a role in fighting climate change after a strategy review that marks the biggest overhaul to date of Europe's most powerful financial institution. The central bank for the 19 countries that use the euro currency has picked up an array of roles over the years, from bank supervision to payment infrastructure, especially in the wake of the bloc's debt crisis a decade ago.
Its first strategy review since 2003 was long overdue and ECB chief Christine Lagarde made it a key priority when she took over from Mario Draghi in late 2019. The project had been scheduled to take a year but was stretched to 18 months as policymakers focused on responding to the COVID-19 pandemic. In a decision flagged by policymakers, the ECB set its inflation target at 2% in the medium term, ditching a previous formulation for "below but close to 2%," which had created the impression it worried more about price growth above the target than below it.
U.S. claims are expected to have fallen to a new post-pandemic low of 350,000, from 364,000 last week. The numbers are due for release at 8:30 AM ET. They come a day after the Labor Department’s monthly for May showed that layoffs had already reached a record low as a newly-reopened service sector scrambled for workers.
USA Key Point
- ECB sets inflation target at 2% after strategy review.
- Treasury yields fall further as the unrelenting bid in bonds continue.
- BOJ reportedly expected to cut growth forecast for the year as virus restrictions dampen outlook.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
Popular
It’s Time to Look at New Zealand
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
The CAD vs. the World: Mid-Term Scenarios for the Currency
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
Fed Keeps Pushing USD to 2000s Highs
The US dollar index has all chances of reaching the 2000s high of 120.00.
Choose your payment system
