Is the Correction in the Yen’s Decline a Turning Point?
26.03.2021
- Rising Stock Prices, a Strong U.S. Dollar, and Rising Interest Rates
- The Dollar Index rose to 92.8
Yesterday, the market rebounded from the risk-off sentiment that had prevailed earlier this week, with stocks, the U.S. dollar, and interest rates all rising; the Dow Jones Industrial Average closed at $32,619, up $200 from the previous day.The fear index (VIX) also fell below 20 again to 19.8, signaling a return to calm. Another positive factor was yesterday’s report on U.S. initial jobless claims, which fell by about 97,000 from the previous week to 684,000—the lowest level since the COVID-19 crisis began.
In the foreign exchange market, Oceania currencies—which had recently fallen sharply—have rebounded, and the Australian dollar is rising against both the yen and the U.S. dollar. The AUD/JPY pair is currently trading around 83.1, while the AUD/USD pair stands at 0.761.
Today, at 4:00 p.m., UK retail sales,Turkey’s Economic Sentiment Index and Capacity Utilization Rate at 4:00 PM, the German IFO Business Climate Index at 6:00 PM, remarks by UK MPC Member Sanders at 9:00 PM, U.S. Personal Income, the U.S. Core PCE Deflator, and U.S. Wholesale Inventories (flash estimate) at 9:30 PM,at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index (final reading), and at 1:45 AM, remarks by MPC member Tenreiro of the UK are scheduled. We will carefully assess whether the yen’s appreciation trend will reverse and shift back to a depreciation trend.
Author: Keisuke Sakurai
