Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Strong risk averse mood gains momentum across markets
Information is not investment advice
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
Fibonacci Levels
XAU/USD: Gold facing a further weakness the last hours and trading near 23.6% retracement. Gold continues to struggle for a bullish reversal.
US Market View
U.S. stock markets are set to open slightly higher later, but only the cyclicals-heavy Dow Jones is on course to end the week in positive territory after Thursday’s slump. Crude oil prices recovered overnight after their worst one-day slump in months, which was caused by financial players finally taking profits on a months-long rally that had already looked tired for a week.
The Bank of Japan starts to dial down its hyper-aggressive monetary stimulus, while Russia becomes the third big emerging economy to raise interest rates this week. The EU's new Covid-19 wave is mounting, as Paris heads back into lockdown, while Nike becomes the latest company to be hit by supply chain problems. France put eight of its regions including those around Paris and Nice back into a stricter lockdown for a month, while Germany registered its worst day for new Covid-19 infections since January. Infection curves are also continuing to rise alarmingly in Poland and Hungary, home to factories that are key parts of the German manufacturing sector’s supply chain.
The first face-to-fact talks between the U.S. and China since President Joe Biden took office got off to a bad start in Alaska, with Chinese delegates lambasting the U.S. for everything from institutional racism to trade tariffs and cyberespionage.
USA Key Point
- EURUSD tests the week's low. Holds the line.
- Cable stumbles to the lows of the day.
- Canada January retail sales -1.1% vs -3.0% than expected.
- Canadian retail sales tops the economic calendar on quadruple witching.
- BofA revises up 10-year Treasury yields forecast for this year to 2.15% from 1.75%.
- ECB's Panetta: ECB could launch digital euro in 5 years at the earliest.
- German vaccine authority says AstraZeneca vaccine can be used again as previously recommended.
- EUR/USD nears the week's lows as dollar keeps steadier so far on the day.
- German health minister: Rising infections could mean not being able to relax restrictions in coming weeks.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
Popular
European Currencies Ahead of the Banks' Statements
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.
Will the FOMC Surprise the Markets?
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.
What awaits the Oil Market in February?
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.
Choose your payment system
