China Economy Becoming More Strict (based on the article)
USD/CNH daily price was bounced from 6.7808/6.7887 support levels to above: the price is located inside Ichimoku cloud for the ranging market condition. If the price breaks 6.8697 resistance levels on close daily bar so the bulliush reversal of the daily prrice movement may be started, otherwise - ranging inside Ichimoku cloud for the waiting for direction.
Weekly EUR/USD Outlook: 2017, January 29 - February 05 (based on the article)
EUR/USD made a move to higher ground but found it hard to continue rising. Will it make substantial falls? GDP and inflation figures stand out in a busy week.
Dollar Index - "The fundamental evidence seemingly points to a
steady US economy that is broadly in the same place as the last time
Janet Yellen and company sat down for policy meeting. Confirming as much
may do little to assuage concerns that this relatively rosy status quo
will not be shattered by a sharp pivot on the fiscal side."
GBP/USD - "In the U.K., Parliament begins its two-day debate on the ‘Brexit’
process just ahead of the BoE interest rate decision on February 2, with
the British Pound
at risk of facing near-term headwinds as the region’s departure from
the European Union (EU) clouds the outlook for growth and inflation.
However, the Monetary Policy Committee (MPC) may continue to drop its
dovish tone and reiterate price growth will ‘overshoot the target later in 2017 and through 2018’ as U.K. consumer prices expand at the fastest pace since 2014. As a result, the fresh updates to the
quarterly inflation report (QIR) may sap the bearish sentiment
surrounding the British Pound and fuel the near-term advance in GBP/USD
should central bank officials further stress ‘there are limits to the
extent to which above-target inflation can be tolerated.’"
USD/JPY - "With continued strength in Japanese markets,
we will likely see the bank shift their yield target higher; but this is
unlikely to happen until more-confirmed signs of recovery are seen. The Bank of Japan has been attempting to be more transparent with capital markets as ‘surprise’ moves like enacting negative rates
worked out terribly. From a macro-economic standpoint, this recent
rally is in the very early, immature stages, with the primary driver
being a very unpredictable and unquantifiable variable (Trump); and the
Bank of Japan will likely want additional information before making any
significant shifts or even signaling such a shift that might potentially
hinder the prospects of a continued recovery in Japanese economic
activity. The forecast for next week on the Yen will be set to bearish."
USD/CAD - "Next week provides YoY
GDP data from November on Tuesday where we’ll look for an improvement on
the prior reading of 1.5%. One of the clearer markers for a potential
relative gain of the Canadian Dollar to the USD is the spread tightening
between US and CA Government 2Yr yields. From July to November, we saw
the spread between US & CA Government 2 Yr yields widen from .0591
on July 5 to a high of .4788 between the two on December 28. The US
10-year premium more than doubled from last springs low of 32 bp to 81
bp high in late-November. On December 28, USD/CAD traded to 1.3598 as a
widening spread favors USD strength in the current environment and a
narrowing or stabilization of yield spreads leads to a stronger CAD and
relatively weaker USD. If the yield continues
to narrow, we may see further CAD strength from a combination of
positive economic surprises. When looking at the chart, a break below
1.3000 would help validate that we’re seeing a resumption of CAD
strength through a long-term barrier of support on USD/CAD and
resistance on CAD. The spreads are always worth watching because a
widening of the spreads again could mean the USD strength that has been
dormant in January is resuming."
USD/CNH - "Two major event risks from China’s
counterpart is Fed’s February rate decision on Wednesday and the U.S.
January Non-farm Payroll (NFP) print on Friday. The USD/CNH
has been retracing within a range after the offshore Yuan strengthened
to a two-month high. Within such a context, moves from the U.S. side may
give out more clues on the next trend for the Dollar/Yuan. For Fed’s
release on Wednesday, the benchmark interest rates will likely remain
unchanged, with an odds of only 12% of a rate hike. There will be no
updates on economic forecasts and no press conference from Chair Yellen;
the major focus will be on the sentiment in Fed’s minutes. Also, the
January U.S. labor market report is expected to heavily weigh on the
Dollar/Yuan after China’s onshore markets reopens. Two weeks ago, Yellen addressed on positive development in the labor market. If the NFP print on Friday came in stronger, it will provide more support to the U.S. Dollar."
Markets To Watch In The Week Ahead: Brent Crude Oil (based on the article)
Daily price is on ranging market condition within 53.85/57.19 levels with the symmetric pattern to be formed by the price to be crossed for direction. If the price breaks 57.19 resistance level to above so the 58.47 resistance will be the nearest target to re-enter.
Markets To Watch In The Week Ahead: The S&P 500 (based on the article)
Daily price is located far above Ichimoku cloud in the bullish area of the chart. The price is trying to cross 2,300 resistance to above for the bullish trend to be continuing. Alternative, if the price breaks 2,282/2,277 support levels to below so the secondary correction within the primary bullish trend will be started.
Markets To Watch In The Week Ahead: Nasdaq 100 (based on the article)
Daily price is on bullish market condition located above 200-day SMA: the price is testing 51.67 resistance level to above for the bullish trend to be continuing.