Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
US futures are pointing slightly higher
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The EUR/JPY pair is now trading within the Kumo. Any decisive movement to the south will push prices to exit the cloud with further bearish implications. Alternatively, the exchange rate would target the upper level of the Kumo.
Equities in the US ended in negative territory at the last hour of the session yesterday. Intraday volatility came down but it remains to be seen if it will remain there. It is important to note that energy stocks have outperformed tech by almost 30% this year. Markets in the US, ended the day as follows: Dow Jones unchanged, S&P500 down by -0.4% and NASDAQ -0.6%. Asian markets are mixed this morning with Japanese stocks higher while Hong Kong is lower led by tech shares. US futures are pointing slightly higher while European futures are slightly lower.
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.
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.