DailyBubble News
DailyBubble News

Coming after two days of stellar gains, US equity markets took a breather

Singapore’s inflation rate will also be due for release later today, with the core aspect still providing little conviction that a peak is in place. Past two months’ readings have hovered around 5.1%, just barely a tick lower from its high at 5.3%, potentially pointing to some pricing persistence. Expectations are for a 5% print for December. A further upside surprise could be on watch to provide further downside for USD/SGD, which has been consolidating at its three-year low at the 1.310 level.

On the watchlist: USD/JPY back at key confluence of resistance

After the wild swing delivered in the aftermath of the Bank of Japan (BoJ) meeting on 18 January, the USD/JPY has once again moved to retest a key confluence of resistance at the 130.80 level. Some recovery in the US 10-year yields over the past week may be the key source of strength for the upward moves here. That said, an upper channel trendline resistance, its 20-day moving average (MA) and a horizontal support-turned-resistance are technical factors to put sellers in place at the 130.80 level, with any failure to overcome the level keeping the downward bias intact and potentially prompting the next move towards the 126.84 level. On the contrary, any successful attempt to move past the level may leave the 134.40 level on watch.

Read More: Coming after two days of stellar gains, US equity markets took a breather

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