Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USDJPY held steady above 114.00
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The GBP/JPY pair is now trading between the Tenkan sen and Kijun sen levels. A break back below the Tenkan sen level will push prices into lower ground. Alternatively, an upward wave would lead the exchange rate above the Kijun sen level, targeting the lower level of the Kumo.
European Market View
Thursday was a fairly quiet but positive day for stocks. The data calendar provided little for markets to trade on and the earnings season is no longer a driver. Materials stood out as the winner yesterday as Evergrande once again, avoided a default, industrial metals improved and EM optimism increase. In the United States major indices closed as follows: Dow Jones down by -0.4%, S&P 500 up +0.1% and NASDAQ up +0.5%. This morning there is some EM optimism with Alibaba reporting a record in Singles Day sales. Property developers are in red again and hence Hang Seng is underperforming. Futures in US and Europe are slightly higher.
In the FX space, broad USD continued to rally yesterday. EURUSD fell to 1.1450, while USDJPY held steady above 114.00.
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.