Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD/JPY runs into key resistance trendline area
Information is not investment advice
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading below the cloud. Further bearish pressure will lead the currency pair to retest the previous lows.
XAG/USD: Silver stands above 50% retracement level with an indecision between bulls and bears.
European Market View
Asian equity markets began the week indecisively as ongoing COVID-19 concerns and US-China tensions contributed to the cautious mood. US House Speaker Pelosi said the House will take up a resolution to impeach US President Trump unless VP Pence and the cabinet invoke the 25th amendment. Treasury yields were at a 10-month top as "trillions" in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade.
Oil prices fell on Monday, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns in Europe and new curbs on movement in China, the world's second-largest oil user, where infections jumped. Mainland China saw its biggest daily increase in virus infections in more than five months, authorities said on Monday, as new infections rose in Hebei, which surrounds the capital, Beijing. Looking ahead, highlights from macroeconomic calendar include Eurozone Sentix Index, BoE's Tenreyro, ECB's Lagarde, Fed's Bostic and Kaplan speeches.
EU Key Point
- Germany reports 12,497 new coronavirus cases in latest update today
- There are two Federal Reserve speakers on the docket for Monday
- Trump's 2nd impeachment will likely be this week, a conviction could take until mid-April
- Pakistan is in talks with the International Monetary Fund (IMF) to put the fiscal support program back on track
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.