Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
US Dollar stands near 2.5 weeks lows. What comes next ?
Information is not investment advice
Ichimoku Kinko Hyo
USD/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 growing.
EU Market View
Asian equity markets began the week subdued and US equity futures marginally pulled back from record levels. European stock markets are seen opening lower Monday, in cautious trading ahead of a week which sees the start of the U.S. earnings season as well as a deluge of important economic data.
The U.S. economy, the world’s largest, is at an “inflection point”, U.S. Federal Reserve Chairman Powell said in an interview on Sunday, with stronger growth and hiring ahead thanks to the vaccine rollout and powerful policy support. However, a resurgence of the virus is still a serious risk, Powell added. U.S. coronavirus cases bottomed nearly a month ago and have edged up steadily since then. Overnight, India reported a record number of Covid-19 infections, overtaking Brazil to become the second-most affected country globally by the coronavirus.
The dollar languished near 2-1/2-week lows against major peers on Monday as a decline in Treasury yields restrained the U.S. currency. Both the dollar and Treasury yields are taking something of a breather after scaling multi-month peaks at the end of last month, powered by bets that an accelerating U.S. recovery from the pandemic will lift inflation faster than Federal Reserve policymakers anticipate.
Oil was down Monday morning in Asia, with U.S. Federal Reserve Chair Jerome Powell saying the U.S. economy was poised for stronger growth while also cautioning that COVID-19 remains a threat.
US President Biden aims to complete the infrastructure program by the summer, according to the US Energy Secretary.
EU Key Point
- Italian health minister says less restrictive measures could be applied from May onwards.
- Germany reports 13,245 new coronavirus cases, 99 deaths in latest update today.
- USD has added small gains so far in Monday's Asia session.
- Australian state leader says vaccination delays mean Australia will be left behind.
- Fed's Powell says does not want to return to bad old days of inflation.
- Iran says one of its nuclear facilities was hit by a "terrorist act".
- Media reports that the UK and EU are close to agreeing to a trading agreement for Northern Ireland.
- Fed's Powell: Economy really seems to be at an inflection point.
Similar
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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