Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
S&P500 closed slightly lower -0.1%
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The EUR/JPY pair is now trading slightly above the Kumo. An upward wave would lead the currency pair above the Tenkan sen level will fuel the pair into fresh highs. A failed attempt to move higher will push prices to enter the cloud with bearish implications.
European Market View
Today's key event is tonight's policy announcement from the Fed. The policy announcement is at 20:00 CET and the press conference starts at 20:30 CET.
Still a lot of focus on Evergrande and Chinese financial markets. This morning the company issued a press release stating in vague terms that it intends to pay interest on its bonds in Chinese currencies following "negotiations off the clearing house". What the statement did not provide however was, how much interest would be paid and/or when. The People's Bank of China increased its injection of short-term cash into the financial system, helping to soothe sentiment, which may help prevent broader contagion in the Chinese credit market. The Chinese equity markets fell slightly but not as much as feared after they re-opened after two days of holiday closing.
In the equity space it was a choppy session for equities around the world on Tuesday. Europe went for the rebound, but the US session was unable to find any real momentum. Instead, S&P500 closed slightly lower -0.1%, Dow Jones -0.2% and NASDAQ 0.2% higher. Sector performance was more aligned between regions, as investors picked up defensives and quality (tech and health care) that was sold in Monday's risk-off session. Worst hit industrials and materials however continued lower. VIX ticked down slightly but still in the 25 range. Asian markets very mixed as Chinese markets reopen after a long holiday. Slightly optimistic undertone though as Shenzhen and Shanghai are only moderately lower and Hong Kong is continuing its rebound. US futures point to a positive opening.
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.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.