Will Goldilocks Continue?
08.04.2021
- Remarks by Federal Reserve Chair Powell
- The pound is falling
Yesterday, the stock market saw narrow, directionless trading, and with the closely watched minutes of the U.S. FOMC meeting offering nothing new, 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%, while crude oil also remained stuck around $59.50. Although the CEO of JPMorgan Chase stated yesterday that “the next two years could be 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 particularly sharp declines, 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 3:00 PM, the UK Construction PMI at 5:30 PM, the release of the ECB Governing Council minutes at 8:30 PM, U.S. initial jobless claims at 9:30 PM, U.S. weekly natural gas inventories at 11:30 PM, and remarks by U.S. Federal Reserve Governor Braad at 12:00 AM:St. Louis Fed President, at 1:00 AM: U.S. Fed Chair Powell’s remarks, and at 3:00 AM: U.S. Minneapolis Fed President Kashkari’s remarks. I intend to watch the market cautiously to see if it can break out of yesterday’s narrow trading range.
Author: Keisuke Sakurai
