Will "Goldilocks" Continue?
08.04.2021
- Remarks by Federal Reserve Chair Powell
- The Pound Falls
Yesterday, the stock market saw minor, directionless fluctuations, and with no new information emerging from the closely watched minutes of the U.S. FOMC meeting, the market as a whole remained in a range-bound pattern.The yield on the 10-year U.S. Treasury note remained range-bound around 1.66%, and crude oil prices were also stuck around $59.50. Although the CEO of JPMorgan Chase stated yesterday that “the next two years could see a ‘Goldilocks’ market,” the market did not react significantly.
In the foreign exchange market, cross-yen pairs—with the exception of the franc-yen—have been trending lower. The pound-yen pair, which saw a particularly sharp decline, has fallen by about 270 pips over the past two days, from 153.4 to 150.6. However, the pound-Australian dollar pair has stopped falling during today’s Asian trading session, so we will be watching the pound’s future direction closely.
Today’s schedule includes German manufacturing orders at 15:00, the UK construction PMI at 17:30, the release of the ECB Governing Council meeting minutes at 20:30, U.S. initial jobless claims at 21:30, and U.S.weekly natural gas inventories, at 24:00 remarks by U.S. St. Louis Fed President Bullard, at 25:00 remarks by U.S. Federal Reserve Chair Powell, and at 27:00 remarks by U.S. Minneapolis Fed President Kashkari.We will watch the situation carefully to see if the market can break out of yesterday’s narrow trading range.
Author: Keisuke Sakurai
