Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USDJPY continues to be below the 110.00 area
Information is not investment advice
Ichimoku Kinko Hyo
NZD/JPY: The NZD/JPY pair is trading within the cloud. An upward wave would trigger the market to exit the Kumo, leading the pair into higher ground.
European Market View
S&P 500 and Dow futures opened slightly higher, while Nasdaq 100 futures dipped as the overnight session kicked off to track a decline in heavily weighted component Amazon.
Many economists are expecting to see a slowdown in the pace of expansion in the economy in the U.S. in the second half of the year.
For corporate earnings, however, the second-half headwinds could be more noticeable, with the impacts of factors like inflation and supply chain issues still at play.
Still, the vast majority of companies have posted second-quarter earnings results that topped estimates. These results, in tandem with ongoing support from monetary policymakers, have helped fuel the market to record levels. The S&P 500 hit a record intraday high on Thursday and ended just short of its record closing high.
In the FX space, this morning, the dollar was little changed with EURUSD trading at 1.1870 area this morning and USDJPY continues to be below the 110.00 area trading at 109.50.
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.