Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD/JPY: Bulls in control near multi-month tops, eyeing 107.00
Information is not investment advice
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
XAU/USD: Gold facing a further weakness the last hours and trading below 23.6% retracement area. It seems that bears gain the battle.
US Market View
U.S. stock markets are set to open higher against the calmer bond market backdrop, able to focus on the progress of the administration’s $1.9 trillion stimulus bill on Saturday. Final PMIs for February were also revised up across most of Europe, with Eurozone manufacturing posting its best reading since early 2018, at 57.9, and the UK Manufacturing PMI being revised up to 55.1. China’s Caxin PMI, however, fell to its lowest in nine months.
Central banks push back against the bond market bears, pushing yields down. The manufacturing recovery in China slows, but Europe's and Japans accelerates. The bond market volatility that dominated last week’s trading has subsided, with the first concrete sign of central banks pushing back against those pushing yields higher in anticipation of higher inflation. The European Central Bank will also publish later details of its bond purchases last week, which should show how keen the ECB was to avoid what it calls an “unwarranted tightening of financial conditions.”
USA Key Point
- US Treasury yields tick higher ahead of North American trading.
- Eurozone February final manufacturing comes at PMI 57.9 vs 57.7 prelim.
- Pound keeps a little higher, but buyers need to do more to recapture upside momentum.
- USD/JPY: Bulls in control near multi-month tops, eyeing 107.00.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?
First, "ETH merge" Google requests are on the rise. At the same time, "buy ETH" requests are at their two-year lows, which is quite a negative factor ahead of the vast update. The community either doesn’t believe in the success, or they are following the "buy the rumors – sell the news" rule and waiting for the massive dump after the merge.