Dollar retreats from highs ahead of Yellen's testimony
Dollar retreats from highs ahead of Yellen's testimony
2021-01-19
• Updated
Ichimoku Kinko Hyo
USD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAG/USD: Silver breaks down many support levels but recently buyers achieved to send price above 23.6% retracement area.
EU Market View
Asian equity markets mostly rallied with risk appetite spurred as trade picked up from Monday’s holiday. Treasury Secretary nominee Yellen is expected to call for big action to spur a recovery. Looking ahead, highlights from macroeconomic calendar include German ZEW, Yellen's Treasury Secretary confirmation hearing, BoE's Haldane, earnings from GS and Netflix.
EU Key Point
Europe car sales plunged by the most on record in 2020
Germany December final CPI comes at -0.3% vs -0.3% y/y
USD/JPY continues to face stiff resistance just above the 104.00 area
The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.
The Crypto market usually also has a rough time in September. Bitcoin lost 12.7% in September 2021, 17.4% in 2020, 17.5% in 2018, 21.4% in 2017 and 45.4% in 2015. The main cryptocurrency increased by 13.3% and 3.95% in 2016 and 2019, respectively.
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?