Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Risk more Cautious and USD Slightly Softer
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAU/USD: Gold after last week’s sell off is trading on the 38.2% retracement area.
US Market View
US stocks are set to open slightly lower, retracing some - but by no means all - of Monday’s surge that took both the Dow Jones and S&P 500 to new record highs. President Donald Trump continues to make life as hard for the incoming administration as possible. The Wall Street Journal said the outgoing administration is drawing up plans to order a further drawdown of US troops in Iraq and Afghanistan by January 15, five days before he leaves office. The so-called OPEC+ bloc of oil producers will hold a virtual meeting of technical experts to review the state of the oil market, two weeks before its ministers decide on the bloc’s output policy for the coming months.
USA Key Point
- Fed's Bostic supports that possible some people are starting to run out of money
- The GBP is the strongest and the NZD is the weakest
- EU says Brexit talks are intensive, no comment on timing for a deal
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.