Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USDCAD : moves above key area and prepares the ground for higher.
Information is not investment advice
Ichimoku Kinko Hyo
CHF/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 near a full retracement area. Gold continues to flirt with session lows despite a very dovish FED.
US Market View
The yields on U.S. Treasury bonds jumped overnight despite the Federal Reserve’s assertion Wednesday that an interest rate hike is not anywhere on the horizon.
Investors are closely watching how fast U.S. Treasury yields may rise after a key U.S. Federal Reserve meeting where the central bank reiterated loose policies that are likely to help boost even more growth and inflation.
The tech-heavy Nasdaq dropped at the open on Thursday as bond yields hit 14-month highs after the Federal Reserve pledged to tolerate inflation and keep monetary policy loose through 2023.
The labor market recovery is also being underpinned by very accommodative monetary and fiscal policy, including President Joe Biden's $1.9 trillion rescue plan, which is sending fresh aid to businesses and households. Progress sputtered between November and January amid a resurgence in COVID-19 cases and expiration of pandemic relief funds from the government. The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but the labor market is regaining its footing as an acceleration in the pace of vaccinations leads to more businesses reopening. Initial claims for state unemployment benefits totaled a seasonally adjusted 770,000 for the week ended March 13, from 725,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 700,000 applications in the latest week.
The European Union’s Covid vaccination drive showed no sign of picking up the pace over the past week and is still running at less than half the pace of immunizations in the U.S., according to weekly figures from the European Centre for Disease Prevention and Control.
USA Key Point
- US stocks open and trade mixed. Dow up marginally. Nasdaq lags.
- USDCAD moves back above swing area as break lower fails.
- USDCHF retests it's 200 day moving average.
- EURUSD retests hourly moving averages as pair trades to new lows.
- US initial jobless claims comes at 770K vs 700K than estimate.
- The AUD is the strongest and the CHF is the weakest.
- Pound falls as Bank of England keeps dovish bias.
- BOE leaves bank rate unchanged at 0.10%, as expected.
- 10-year Treasury yields hold at 13-month highs ahead of North American trading.
- WHO Europe director: The benefits of AstraZeneca vaccine outweigh any risks.
- Germany reports 17,504 new coronavirus cases, 227 deaths in latest update today.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.