Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Risk-off mood fails to lift dollar
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver continuous to stand below 23.6% retracement area. Bulls and bear are in a battle.
EU Market View
Asian equity markets were mostly negative, US equity futures extended on the losses seen during the prior session. European stock markets are seen opening sharply lower Wednesday, following the late selloff on Wall Street overnight amid uncertainties over inflation and future Federal Reserve policy. The major indices on Wall Street failed to hold onto early gains on the back of strong retail earnings Tuesday, suffering a sharp selloff into the close. All the major tech stocks ended in the red as investors feared holding these growth companies into the release of the minutes of the last Federal Reserve meeting. Stocks have been pressured of late on concerns. that growing inflationary pressures could force the U.S. central bank to rein in its ultra-easy monetary policies.
With this in mind, investors will study the fomc of the April Fed meeting, when they are released later Wednesday, for clues of when the central bank could consider cutting back its bond purchases, a move likely to precede increases in interest rates. The dollar edged marginally lower in early European trade Wednesday, remaining near multi-month lows ahead of the release of the eagerly-awaited minutes from the last U.S. Federal Reserve meeting.
Oil prices weakened Wednesday as investors digested the prospects of more supply entering the market following reports of progress in the talks between the United States and Iran to revive a deal limiting the Persian Gulf country’s nuclear program, which could lead to a lifting of sanctions on its crude exports.
British consumer price inflation rose to 1.5% in April from 0.7% in March, official figures showed on Wednesday, ahead of the expected rise of 1.4%. There was a more notable rise in U.K. producer price inflation, with input prices rising nearly 10% on the year.
Biden administration was said to be encouraged by the bipartisan infrastructure meeting. Looking ahead, highlights include UK inflation, EZ final CPI, Canadian CPI, FOMC Minutes, ECB’s Panetta, Rehn, Lane, Fed’s Bullard, Bostic speeches.
EU Key Point
- Germany reports 11,040 new coronavirus cases, 284 deaths in latest update today.
- BOJ Gov Kuroda says Japan's economy remains under pressure.
- Japan chief cabinet secretary Kato is talking of adding further areas to State of Emergency.
- New York State launch criminal investigation into Trump organization.
- Moody's expect EU funds will boost growth, cut debt in Southern Europe.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.