Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD/JPY : targets higher levels
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAG/USD: Silver gains but continuous to stand below key 23.6% retracement area.
EU Market View
Asia stocks opened higher on Tuesday, cruising in the slipstream of a record high overnight gauge of global equity markets, with investors hoping for inflation and monetary policy clues later in a week full of key central bank meetings and data points. Asian markets lack direction following a similar indecisive performance on Wall Street, as the absence of significant catalyst has participants looking towards the key events later this week including the ECB meeting and US CPI. US Republican Senator Capito was said to not sound too optimistic about talks with President Biden ahead of today’s meeting.
The European Central Bank is due for its monetary policy meeting on Thursday, the same day U.S. consumer price index number will be released, potentially fuelling talks of tapering by the Federal Reserve. In Asia, China inflation data is due on Wednesday.The dollar edged higher in early European trade Tuesday, but activity remains subdued ahead of this week’s key U.S. inflation release after Friday’s lackluster payrolls number.
Oil prices lost more ground on Tuesday as concerns about the fragile state of the global recovery in demand for crude and fuels were heightened by data showing China's oil imports fell in May.
EU Key Point
- Germany April industrial production -1.0% vs +0.4% m/m expecte
- Germany reports 1,204 new coronavirus cases, 140 deaths in latest update today.
- Japan May economy watchers survey current situation 38.1 vs 34.0 expecte
- China state media advise Australia to diversify its iron ore exports away from China.
- EU vice president Sefcovic threatens UK with "sausage trade war" (re Brexit).
- Coronavirus - Canada is set to loosen its quarantine rules for vaccinated travellers.
- Japan GDP final for Q1 2021 -1.0% q/q (prior +2.8%).
- Australian inflation expectations are steadily moving higher.
- US report says theory that COVID-19 virus leaked from a Chinese lab in Wuhan is plausibl
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Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
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European Currencies Ahead of the Banks' Statements
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.
Will the FOMC Surprise the Markets?
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.
What awaits the Oil Market in February?
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.
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