Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD/CAD : Higher oil prices support Canadian dollar
Information is not investment advice
Ichimoku Kinko Hyo
USD/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 yesterday faced a sharp sell off. Today buyers return and keep price above 61.8% retracement area.
EU Market View
Asian equity markets traded mostly higher as the region took impetus from global peers including the advances on Wall Street as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programmes accelerated. Wall Street rallied on Tuesday on renewed hopes for U.S. President Joe Biden's proposed $1.9 trillion COVID-19 aid bill as the Senate took steps to allow Democrats to pass Biden's package without Republican support.
The U.S. Treasury yield curve continued to steepen in Asian trading, reflecting expectations for more fiscal spending and growing economic optimism.
The roll-out of vaccines in many countries is gathering pace, earnings season in the United States and Japan has so far been bright, and oil prices are at their highest in a year, which are all positive signs for the global economy.
Looking ahead, highlights from the macroeconomic calendar include Eurozone, UK & US Markit PMIs (final), EZ CPI, US ADP, ISM services, OPEC+ JMMC, Fed's Kashkari, Bullard, Harker, Mester, Evans, Kaplan speeches.
EU Key Point
- Germany reports 9,705 new coronavirus cases, 975 deaths in latest update today.
- South Korea may decide to ban short selling as soon as today.
- RBA says need to keep loose monetary policy until people get jobs, higher wages.
- US Yellen calling a meeting of regulators to discuss market volatility driven by retail trading.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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.