All eyes on remarks by Bank of England Governor Bailey

All eyes on remarks by Bank of England Governor Bailey

21.04.2021

Yesterday, European markets saw a sharp decline of more than 1%, with Germany’s DAX closing at 15,129, down 1.55% from the previous day.In the U.S. market, all three major stock indices continued their decline, with the Dow Jones Industrial Average closing at $33,821, down 0.75% from the previous day. The fear index (VIX) surged to a high of 18.6. Crude oil prices fell, while gold prices trended upward.

In the foreign exchange market, cross-yen pairs are generally trending lower, including the euro—which was thought to be in an uptrend—as well as the pound and the U.S. dollar. The USD/JPY pair broke below 108.00 and fell to 107.8.From a technical perspective, there appears to be no support near the 107.00 level on the daily chart, so we should remain cautious about further downside movements just in case. The euro/yen pair has also fallen sharply, dropping about 110 pips from 130.9 to 129.8.

Today, the UK Consumer Price Index, UK Retail Sales, and UK Producer Price Index are scheduled for 3:00 PM; remarks by Bank of England Governor Bailey are scheduled for 7:30 PM; the Canadian Consumer Price Index is scheduled for 9:30 PM; the Bank of Canada’s policy rate decision and statement are scheduled for 11:00 PM; U.S. weekly crude oil inventories are scheduled for 11:30 PM;at 12:00 AM, remarks by BOC Governor McLeam; and at 2:00 AM, the US 20-year Treasury auction. With the ECB’s policy rate announcement and press conference scheduled for tomorrow, I intend to watch the price movements of European currencies closely and cautiously.