Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
US Dollar medium term outlook remains choppy
Information is not investment advice
Ichimoku Kinko Hyo
CAD/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
XAG/USD: Silver continuous to stand below 23.6% retracement area. Bearish pressure is gathering momentum day by day.
EU Market View
Asia Pacific equity markets eventually traded mostly higher as the region picked up the baton from last week's late surge on Wall Street. European stock markets are seen opening largely lower Monday, weighed by growing concerns the third wave of Covid-19 cases will result in further lockdowns as well as weakness in the banking sector as Credit Suisse warns of a “highly significant” hit to results. Worries are growing that Europe's biggest economies will have to tighten their restrictions still more, further delaying the region’s economic recovery, after France posted its highest number for Covid patients in intensive care units this year on Sunday. Earlier Monday Japan’s biggest investment bank Nomura flagged a possible $2 billion loss at a U.S. subsidiary, which the bank said stemmed from transactions with a U.S. client.
The dollar began the week on a firm footing, inching toward a milestone peak against the euro on Monday, as a cautious market mood pushed investors to safety while U.S. economic strength and a rapid vaccine rollout also added to the greenback's shine.
Oil prices retreated Monday as the container ship stuck in the Suez Canal was partially refloated, raising the possibility that it may be freed in the near future, thus unblocking the key waterway.
Looking ahead, highlights from macroeconomic calendar include ECB net PEPP purchases and ECB's de Cos speech.
EU Key Point
- Suez Canal authorities confirm that Ever Given has been successfully refloated.
- BOJ governor Kuroda scheduled to speak tomorrow.
- New Turkish central bank chief says that April rate cut is not guaranteed.
- Germany reports 9,872 new coronavirus cases, 43 deaths in latest update.
- Australian coronavirus wages subsidy has ended, 100K jobs expected to be lost.
- Brexit - more than a fifth of small UK exporters have temporarily halted sales to the EU.
- Doctors in France have warned over the rise in COVID-19 intensive care patients.
- ECB's Lane weekend comments - European Central Bank must remain a key stabilizer of the euro zone econom
- Germany's Merkel says the country need curfews, may use Federal law to tighten restrictions.
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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…
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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.
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