Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Risk Off Returns Strong
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAU/USD: Gold moves to the 23.6% retracement level. It seems that gold loses strength under the current risk-off mood.
EU Market View
EU Chief Brexit negotiator Barnier and his UK counterpart Frost have extended discussions in London until Wednesday. Looking ahead, highlights from the macroeconomic calendar include German IFO, US New Home Sales, New Zealand Trade Balance, Chinese Communist Party Key Meeting (26th – 29th), SNB’s Jordan speech.
EU Key Point
- China says to sanction Boeing Defense, Lockheed Martin over Taiwan arms sale
- French government scientific advisor supports that there are 100 000 new coronavirus cases a day in France
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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.