In a couple of hours, we’ll see Uncle Sam’s January inflation numbers.
Will the discharge propel the greenback to multi-month highs in opposition to the yen?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/USD’s key resistance space after a decide up in risk-taking. Be sure you take a look at if it’s nonetheless a legitimate commerce!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Knowledge:
Fed’s Mester: “Every assembly goes to be in play”
Fed’s Bostic sees three rate of interest hikes in 2022, leaning in the direction of 4
EIA: U.S. crude stockpiles drop unexpectedly, demand hits report excessive
RICS: A web stability of +74 of its members reported home worth will increase in Jan, up from +70 in Dec
Japan’s producer costs up by 8.6% y/y, the eleventh straight month of producer worth will increase
Ford, Toyota halt some output amid Canadian trucker protests
Inventory rally loses steam in Asia as U.S. inflation check looms
BOE Gov. Bailey to provide a speech at 9:05 am GMT
EU’s financial forecasts at 10:00 am GMT
U.S. CPI report at 1:30 pm GMT
U.S. preliminary jobless claims at 1:30 pm GMT
Fed’s price range stability numbers at 7:00 pm GMT
RBA Gov Lowe to provide at a digital listening to at 10:30 pm GMT
Japan’s markets shall be out on a financial institution vacation (Feb 11)
NZ quarterly inflation expectations at 2:00 am GMT (Feb 11)
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: USD/JPY
USD/JPY is buying and selling slightly below the 116.00 degree that has served as resistance a minimum of 3 times since late November.
Will we see USD/JPY commerce to multi-month highs in the present day? In a couple of hours, Uncle Sam’s will print its January CPI figures.
Markets see month-to-month shopper worth will increase steadying from final month although annualized CPI could outpace even final month’s 7.0% progress.
Sooner-than-expected worth will increase, printed lower than every week after the sturdy NFP report, could spur the Fed to hurry up its tapering/tightening schedule.
USD might acquire pips in opposition to its fellow safe-haven and leap as much as the 117.00 zone close to the highest of the 4-hour chart’s ascending channel.
I’m not ruling out a buy-the-rumor, sell-the-news state of affairs, nonetheless. In spite of everything, that is what occurred in the course of the launch of December’s inflation report when minimal upside surprises resulted in profit-taking that weighed on the greenback.
If merchants determine that January’s worth will increase gained’t change the present tempo of the Fed’s coverage adjustments, or if a risk-friendly buying and selling setting encourages dollar-selling throughout the board, then USD/JPY bears might observe the bearish divergence on the chart and drag the greenback nearer to the mid-channel help and 100 and 200 SMAs.