Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
US Dollar advances on higher yields. How long will it last ?
Information is not investment advice
Ichimoku Kinko Hyo
CAD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver bears return for another time and send price significantly lower on the key retracement area of 23.6%.
EU Market View
Asian equity markets mostly took impetus from the gains on Wall Street where the S&P 500 and the DJIA notched fresh record highs, Nasdaq outperformed. European stock markets are seen opening mixed Friday, as traders digest a positive lead from Wall Street but also fresh Covid worries and weak U.K. growth data. Europe received a positive handover from Wall Street, and then Asia, after President Joe Biden signed his landmark $1.9 trillion covid package into law and held out the prospect of a return to normal life by the July 4 Independence Day holiday. While the U.K. and U.S. press ahead with their vaccination rollouts, the EU is struggling to give its population shots and infection rates are rising again in big countries such as Germany and Italy, as well as much of central Europe. France reported over 30,000 new coronavirus infections on Wednesday, for the first time in two weeks, prompting the country’s health minister, Olivier Veran, to warn that the Covid-19 situation in greater Paris was worrying.
Oil prices slipped Friday but remained at elevated levels amid confidence about demand recovery in the second half of the year as the global economy regain strength.
Looking ahead, highlights from macroeconomic calendar include UK GDP, US PPI, Canadian jobs report, Uni. of Michigan.
EU Key Point
- ECB's Villeroy supports that there is no risk of inflation overheating in Europe.
- 10-year Treasury yields jump higher to hit 1.60% again.
- UK January monthly GDP comes at -2.9% vs -4.9% m/m than expected.
- Risk keeps more tentative as yields tick higher ahead of European trading.
- Germany reports 12,834 new coronavirus cases, 252 deaths in latest update today.
- ECB does not intend quicker bond-buying to lead to further stimulus, according to sources.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.