This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Back-to-back monthly gains in Eurozone economic confidence helped see the main indices push higher into positive territory. Although the initial set up ahead of the Asian session is not looking all that positive. The ASX is set to open down 0.2%, and the much coveted prize of the 5400 level looks set to be lost after a mere two days.
Slightly more concerning is that the Nikkei is also looking to open down. And this is despite the yen falling to its weakest level since April. The USD/JPY gained 0.8% overnight as the US dollar continued to strengthen and as the market increasingly priced in a delay to the 2017 tax increase. On the Ichimoku chart the USD/JPY is now looking like a strong buy. The price has broken above the cloud, the cloud has turned green – all of it is in a textbook confirmed reversal. The Bank of Japan are clearly hoping US data this week doesn’t upset plans for a July rate hike by the Fed.