Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
S&P logged its fifth consecutive gain
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The NZD/JPY pair is now testing the upper level of the cloud. A successful penetration of this level will most likely lead the exchange rate higher. A failed attempt to move higher will push prices again back to the Kumo.
European Market View
Today EU will discuss whether to impose again restrictions on visitors from the US. The fact that COVID-19 is still with us continues to create problems for some sectors, here possibly the tourism sector in Europe. COVID-19 is also creating problems for supply chains, South East Asia -for instance- is hard hit at the moment.
Equity markets around the world posted small movements on Wednesday, although US managed to climb to new highs. The big story was however investors seeking exposure towards value sectors, like banks, industrials and energy. Meanwhile, health care and tech continued to lag. S&P logged its fifth consecutive gain up 0.2%, Dow 0.1% and NASDAQ 0.2%. Equity sentiment muted again this morning with Asian markets slightly lower and US futures the same.
In the FX space, yesterday was very quiet in the FX markets with EUR/USD, EUR/GBP, EUR/NOK and EUR/SEK broadly unchanged ahead of Fed Chair Powell's speech at Jackson Hole tomorrow, Friday.
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.