Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
The dollar suffered losses against the rest of G10 yesterday
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The GBP/JPY pair is trading within the cloud. If the bulls manage to withstand the sellers’ pressure, the currency pair will exit the Kumo. The market will attempt to reach the previous top. Alternatively, a plunge of the exchange rate will push prices below the cloud, with immediate target the previous low.
It seems that equity markets did not mind the high US inflation print as bond yields dropped slightly following the CPI release. SP500 ended the day up by +0.3%. In Asian trading markets are calm this morning, although showing small declines. The SP500 future is down -0.2%, Hang Seng marginally lower and Nikkei also down by -1.0%.
The dollar suffered losses against the rest of G10 yesterday even as the high US CPI inflation print means tightening of US monetary policy.
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.