Analytics

News, Trend, & Analytics 14.05.2021

Japanese Economic Woes

Today the focus is on British jobs, Inflation concerns, and Japanese recovery.

 

Calendar

11:30 UTC

The European Central Bank will release its Monetary Policy Statement. The central bank’s sentiment could weigh on the EUR.

Assets to trade: EUR/USD, EUR/CHF, EUR/NZD


12:30 UTC

The US Core Retail Sales (MoM) for April will be released. Forecast: 0.7%. If the data is higher than expected the USD could receive negative pressure.

Assets to trade: USD/NOK, USD/CAD, USD/JPY

 

News

Inflation talk grew on Wednesday as data showed US consumer prices increased by the most in nearly 12 years in April. Affects USD


Online job adverts are on the rise in Britain, pushed up by the reopening of pubs and restaurants and other hospitality firms, and consumers are spending more money on dining out and on travel plans. Affects GBP


Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank was ready to buy exchange-traded funds (ETF) “boldly” when necessary, but did not offer any hints on whether it would step in to stem the current market rout. Affects JPY


European stocks slid on Thursday, tracking an overnight selloff on Wall Street, as a rapid rise in U.S. inflation spooked investors. Affects STOXX 50


Japan’s service sector confidence fell at the sharpest pace in a year in April, a Cabinet Office survey showed on Thursday, as curbs aimed at containing a resurgence of COVID-19 infections depressed consumer spending. Affects JPY

 

Technical Analysis

EUR/JPY

The Japanese economy has continued to struggle through the pandemic and the Bank of Japan’s words and inaction have not helped the situation. As Europe sees some light at the end of the tunnel, it seems to be a bit longer for the nation of the rising sun.

The pair is in an uptrend, and the recent Bullish Engulfing turning into a Three White Knights pattern indicates the strength of the trend.

EUR/GBP

The pair has tested its support level at 0.859 and bounced upward. Prices will likely continue to test this level.

Hang Seng Index

Prices have been declining, currently testing the support level around 27790, downward pressure could continue to build as the resistance (blue) and support (red) lines intersect.

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