USDJPY Opens with a Gap. Ukraine and Inflation in Focus.

Welcome to this week’s Market Blast Fundamentals.

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I’m Brad Alexander and, on behalf of Valutrades, today we will take a look at GBPUSD, GBPCHF, GBPJPY, WTI (USOil), Gold (XAUUSD) and USDJPY.

USDJPY has opened this morning with a weekend gap and, very often, price action will try to fill that gap.

We will look at this from the technical side tomorrow as USDJPY is in an uptrend but, more importantly, all global central banks will be looking at Inflation this week with US PPI and Japanese GDP on Tuesday, and US Retail Sales Wednesday.

The markets are hoping for higher Retail Sales Wednesday to confirm that December’s bad figures were just driven by COVID Omicron. 

The situation in Ukraine is still quite uncertain so Gold has become a safe haven for investors with price now in the mid $1850s.

Any good news on the Russia/Ukraine conflict could see XAUUSD falling.

This has also caused volatility in the Crude Oil market with WTI ranging between $93 and $95 and some analysts feel that prices could reach $100 per barrel if the Ukraine situation escalates.

We see GBP weaker in GBPUSD, GBPCHF and GBPJPY even though the markets are pricing in more Interest Rate Rises this year.

The Bank of England will be watching Wednesday’s PPI and CPI data to see just how bad Inflation is affecting the UK economy.

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