Should We Focus on Product Prices?
29.03.2021
- A slight trend toward a stronger yen
- The U.S. dollar is showing signs of weakness
Last weekend, stock prices rose in both European and U.S. markets, creating a “risk-on” sentiment characterized by rising stock prices, a stronger U.S. dollar, and higher interest rates.Additionally, while oil tankers and LNG (liquefied natural gas) carriers have been stranded due to a ship running aground in the Suez Canal, crude oil prices have been fluctuating around the $60 mark.
The foreign exchange market is once again showing a slight trend toward yen appreciation, with cross-yen pairs generally declining. The Canadian dollar has fallen particularly sharply; after forming a double top with lower highs, the CAD/JPY pair has dropped from 87.3 to 86.9.Similarly, the USD/JPY pair has fallen from 109.8 to 109.5. Among European currency pairs, the EUR/GBP pair resumed its decline after a brief pause and is currently trading around 0.855.
Today, the UK’s mortgage approvals, consumer credit balances, and M4 money supply are scheduled to be released at 17:30, followed by the Dallas Fed Manufacturing Activity Index at 23:30 and remarks by Fed Governor Waller at 24:00.This week features the U.S. ADP Employment Report and the U.S. Nonfarm Payrolls report, but since there are no particularly major events, price movements are likely to be straightforward. We will closely monitor price trends so that we can react promptly should a trend emerge.
Author: Keisuke Sakurai
