Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD/CAD : commodity currencies continue to slide
Information is not investment advice
XAU/USD: Gold facing a further consolidation above 23.6% retracement area. Bears have returned recently.
Ichimoku Kinko Hyo
EUR/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
U.S. stocks are seen opening marginally higher Friday, remaining near record levels, with investors seemingly unconcerned about soaring inflation ahead of next week’s Federal Reserve meeting. Investors appear to have looked through this release, as the makeup of the index supported Federal Reserve Chair Jerome Powell's repeated assertion that higher inflation will be transitory. Global equity funds faced big outflows in the week to June 9, as investors were wary ahead of U.S. inflation data, spooked by worries that an upside surprise could prompt the Federal Reserve to start tapering its massive stimulus.
At the same time the recovery in the labor market continued as the number of Americans filing new claims for unemployment benefits fell to the lowest level in nearly 15 months. European shares scaled their latest record high and bond yields fell from the United States to the euro zone on Friday as investors shrugged off rising U.S. consumer prices and welcomed signs central banks will stick to loose policy, despite lingering concerns about longer-term inflation.
The U.S. consumer price index posted on Thursday its biggest year-on-year gain since August 2008 of 5%, following a 4.2% rise in April. Hefty contributions from short-term rises in airline ticket prices and used cars cast doubts on underlying inflationary pressures. The rise in the U.S. consumer price index reflected short-term adjustments related to the reopening of the economy, some economists say. As such, many investors are confident the Federal Reserve is deftly handling a rebound in economic growth - though its definition of "transitory" remains unclear.
Oil prices rose on Friday to fresh multi-year highs and were set for their third weekly jump on expectations of a recovery in fuel demand in the United States, Europe and China as rising vaccination rates lead to an easing of pandemic curbs.
USA Key Point
- Dollar keeps steadier so far on the sessio
- ECB is absolutely capable of controlling inflation.
- Some upside risks slipping into inflation outlook.
- ECB's Holzmann: Inflation above 3% would prompt strategy review.
- Heads up: BOE speakers due later in the session.
- Bundesbank revises higher GDP, inflation forecast for the yea
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.