Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD/JPY expected to trade between 110.05 and 111.10.
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.
XAG/USD: Silver continuous to stand below 50% retracement area.
EU Market View
Asian shares rose and a gauge of global equities hovered near record highs on Wednesday after rising consumer confidence in economic recovery boosted the Nasdaq index to its highest-ever closing level. MSCI's global share index was set for a fifth straight month of gains on Wednesday. Its index tracking Asian shares outside Japan was set for a small monthly loss, but still on course for a fifth straight quarterly rise, its longest such streak since 2006-2007. On Monday, Richmond Federal Reserve President Thomas Barkin said the U.S. central bank has made "substantial further progress" toward its inflation goal in order to begin tapering asset purchases.
The market's continued focus on Fed plans for tapering come as the world's largest economy continues to rebound from pandemic lockdowns.
U.S. consumer confidence jumped to its highest level in nearly one and a half years in June as growing labour market optimism amid a reopening economy offset concerns about higher inflation. That came even as the Federal Housing Finance Agency house price index shot up a record 15.7% in April from a year ago, corroborating soaring house price inflation.
The dollar maintained its recent positive tone in early European trade Wednesday, as the spreading outbreak of Covid-19 cases in Asia prompts risk aversion ahead of the release of key U.S. jobs data. Risk appetite has taken a hit of late as the spread of the virulent delta strain of the Covid-19 virus through many Asian countries has caused the reimposition of restrictions.
EU Key Point
- ECB's Villeroy: Inflation should go up a bit this year then down again in 2022, 2023.
- UK Q1 final GDP -1.6% vs -1.5% q/q prelim.
- Head of Singapore's central banks says current monetary policy appropriate for no
- China official PMIs for June. Manufacturing 50.9 (vs. expected 50.8), Services 53.5 (expected 52.7).
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.