Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Yesterday's session was all about the USD appreciating
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair is now trading slightly above the cloud. An upward wave would trigger the market to retest the previous peak. A failed attempt to move higher will push prices to find support at the upper level of the Kumo.
European Market View
The U.S. Congress has to pass a short-term funding bill before the deadline at midnight U.S. time today, with which would avert a government from shutting down on Friday.
In Asia, and in regards to Evergrande crisis, while it seem that markets have quickly moved to other issues, it is far too early to say that things are back to normal on China's property crisis.
In the equities space it felt like equities made a comeback yesterday. In Europe markets were higher, but globally equites were flat, measured by the MSCI world indices. Interesting to see defensive/value/large cap continuing to outperform and tech sector continuing to underperform despite risk appetite improving and yields being flat. In US, Dow +0.3%, S&P 500 +0.2% and NASDAQ -0.2%. Asian markets are mixed this morning with the Hang Seng index underperforming while most other markets are in green. European and U.S. futures are green as well.
Yesterday's session in the currency markets was all about the USD appreciating and EUR/USD moving close to a full figure lower. On the other end of the spectrum, NZD, MXN and NOK all posted losses in excess of 1% versus the greenback.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?