Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
The JPY is the strongest and the AUD is the weakest.
Information is not investment advice
XAU/USD: Gold facing a further consolidation above 23.6% retracement area. Bulls have returned before NFP.
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.
US Market View
Germany's annual consumer price inflation eased in June, but remained above the European Central Bank's target of close to but below 2%, the Federal Statistics Office said on Tuesday. Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 2.1% in June, down from 2.4% in May. The debate about when to rein in its massive bond-buying program is starting to get heated in the European Central Bank, judging by comments this week by some of the central bank’s policymakers.Germany's Jens Weidmann openly discussed on Monday the winding down of the ECB’s 1.85 trillion euro Pandemic Emergency Purchase Programme.
U.S. stocks are seen opening mixed Tuesday, with the nasdaq handing back gains after closing at record levels, ahead of potentially significant labor market data later in the week. Facebook joined the $1 trillion club on Monday, boosted by the news that a U.S. judge dismissed the Federal Trade Commission’s antitrust case against the social media giant.
Central banks and governments were quick to buttress the world economy as the Covid-19 pandemic erupted. The bigger challenge will be weaning it off the unprecedented support they’ve deployed, according to the Bank for International Settlements. As economies rebound, officials will need to enact more targeted fiscal measures to preserve policy space, the Basel-based institution said in a report released Tuesday and entitled “Central Banks Facing Pandexit Challenges.” In light of the pick-up in consumer price pressures -- which are probably temporary -- policy makers will also need to strike a balance between reassuring markets they’re willing to support growth and showing they’re prepared to fight inflation.
New U.K. Health Secretary Sajid Javid has his hands full. Appointed over the weekend after the hasty departure of predecessor Matt Hancock, he was greeted by the news that the country reported over 22,000 new Covid-19 cases on Monday, the highest level since late January. Cases have risen steadily since the end of May, with the seven-day average going from around 3,500 to over 16,000. The highly-contagious delta variant makes up the vast majority of these new cases, and this is resulting in the U.K. becoming more isolated. Hong Kong will ban all passenger flights from that part of the world from Thursday, its government announced Monday, while Spain has Tuesday taken U.K. visitors off its list for restriction-free travel.
USA Key Point
- US consumer confidence and housing data coming u
- Dollar continues to keep firmer to start the wee
- USD/CAD inches back towards key technical level.
- Japan reportedly likely to appoint international policy veteran as next top currency official.
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.