Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
The black gold looks set for the first weekly rise in three weeks
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair has breached the Kijun Sen level. Further bearish sentiment will push prices into lower ground.
European Market View
After yesterday's equity sell-off things are looking mixed in the Asian session this morning. US equity futures are flat, while many of the big Asian indices have erased the majority of losses that followed the opening hours. Interestingly, growth and technology stocks have clearly underperformed value post Wednesday's FOMC meeting.
Yesterday Bank of England kept monetary policy unchanged and signaled that it will not hike rates for a long period of time. Bank of England's discussion on negative interest rates weighed on the GBP.
EUR/USD started the day by moving lower due to the general risk-off after the slightly disappointing Fed meeting Wednesday night. EUR/USD recovered during the day and remains in the 1.17-1.19 range, which we expect the cross will continue to trade within near term.
Oil price. The black gold looks set for the first weekly rise in three weeks.
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.