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JPY rallies; Markets await US inflation data


  • JPY gains across the board as JAP225 falls lower
  • European stocks fall lower; US little changed
  • Oil.WTI technical overview as market remains below $60
  • GBP gains on CPI beat but pares move throughout the session
  • Cryptocurrencies fall back 
  • US data the standout for Wednesday’s session

A look across the FX space today reveals that the Japanese Yen is in vogue with the currency the best performer in G10 space. The JPY has gained 1% or more against the AUD, CAD and USD and even managed to edge higher by 0.5% against the next best performer which is the CHF. Overnight the JAP225 made a break lower to trade at levels not seen since October and the market has now declined an incredible 4000+ ticks since posting its highest level since the early 90s just over 3 weeks ago.

European markets have fallen lower today with the DE30 falling by a little over 1% to drift lower once more. The US equivalents are little changed by the European close and seem to be consolidating after some of the recent volaitlity. 

Oil has undergone a heavy sell-off in the previous week that may be contributed to different factors. Among them we can name strengthening of the USD, macro outlook and the technical situation on the chart. A technical overview can be found for Oil.WTI here

While UK headline inflation remained unchanged in January core price growth sped at quite notably at the same time, both readings exceeded forecasts coming from economists surveyed by Bloomberg. As a result, the British pound saw a knee-jerk increase but these gains have pared a little throughout the session. 

Bitcoin price action has been quite calm of late but it seems that the price has already surrendered its gains. Do notice that the most famous virtual currency is trading below a lower boundary of an ascending channel which could suggest some fatigue of Bitcoin bulls. From a technical standpoint one may assume that the price could be heading lower toward $7600 if it breaks out of the channel durably.

Looking ahead, tomorrow’s US CPI data could prove pivotal for the markets. Watch our short video previewing the event and the impact it could have on the US500, Gold and USDJPY here



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