Image source: Pixabay
 

Asian equities trade with a mixed to the mildly positive tone, following a robust handover from Wall Street with the benchmark SP500 closing out the day +1.2%. Japanese inflation data printed a marginally smaller gain than markets were expecting 0.2% versus the expected 0.3%, as the Yen recovered ground on the print adding to the inflation conundrum awaiting the new BoJ Governor Ueda.

In the UK, this morning’s jobs data once again confirmed continued tightness in the UK employment landscape, providing further cover to Bank of England hawks, as the data does little to suggest that inflation is retreating sufficiently back to target, there was an unexpected uptick in regular pay increases nudging up to 6.7% suggesting overall pay pressures remain anchored to the upside.

European markets are set to open flat to marginally higher this morning with the FTSE once again the stand-out performer as investors eye the next major directional catalyst in the form of the US CPI print later today. Markets are looking for the annual headline rate to continue to retreat from last year's highs, the area of ambiguity is seen in the more noisy month-over-month data, which has continued to remain stubbornly elevated driven by gasoline prices, coupled with a significant uptick in used car sales, the other fly in the Fed’s ointment is seen from the services sector which is likely to remain at uncomfortable levels for FOMC doves. Investors will also eye any prior months' upward revisions, given December revision to a 0.4%month over month rise. It is likely the report will be deemed to match Fed Chair Powell’s assessment that the disinflationary process is likely to be uneven, overall an annualized print of 6.0-6.3% is likely well priced by markets, to really move the needle one way or another, we would need to see a print outside of this range, below 6% would be well received by equity investors above 6.3% would be a concern, sparking a narrative of the return of inflation with investors fleeing equities for the protection of bond markets.
 

FX Options Expiration New York Cut

• EURUSD 1.07(531m)
• AUDUSD .6900(371m)
   

Overnight News of Note

• Asian Shares Mixed While US Futures Slip, Yen Recoups Losses
• Japan Nominates Kazuo Ueda As Next Bank Of Japan Governor
• Japan Averts Recession But Q4 GDP Rebound Weaker Than Expected
• Traders Bet A Ueda-Led BoJ Will Soon Abolish Yield Curve Control
• NAB: Australia Business Activity Rebounds In Jan On Strong Sales
• Australian Consumers Shell-Shocked As Interest Rates Climb
• New Zealand Inflation Expectations Drop Before RBNZ Rate Review
• New Zealand Declares State Of National Emergency Due To Cyclone
• Biden Will Name Fed’s Lael Brainard As His Top Economic Adviser
• Oil Drops On US Plan To Sell More Oil From Strategic Reserve
• Ford To Invest $3.5 Bln To Build Michigan Battery Plant

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4160

• Primary support is 4105
• Primary objective is 4384
• Below 4070 opens 4040
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

EURUSD Bias: Intraday Bullish Above Bearish below 1.0810

• Primary resistance is 1.0950
• Primary objective is 1.06
• Below 1.0580 opens 1.0500
• 20 Day VWAP bearish, 5 Day VWAP bullish

(Click on image to enlarge)

GBPUSD Bias: Intraday Bullish Above Bearish below 1.21

• Primary resistance  is 1.2265
• Primary objective 1.1840
• Above 1.2265 opens 1.2337
• 20 Day VWAP bearish, 5 Day VWAP bullish

(Click on image to enlarge)

USDJPY Bias: Intraday Bullish above Bearish Below 131.50

• Primary support  is 130
• Primary objective is 134.70
• Below 130.80 opens 130.11
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .7050

• Primary resistance is .7050
• Primary objective is .6750
• Above .7150 opens .7250
• 20 Day VWAP bearish, 5 DayVWAP bullish 

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 21500

• Primary support 21200
• Primary objective is 25000
• Below 20300 opens 19500
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

More By This Author: