Should we keep an eye on the ECB's policy rate?
22.04.2021
- U.S. Existing Home Sales
- ECB Policy Rate and Statement Release
Yesterday, U.S. stock markets rebounded, resulting in a risk-on environment characterized by rising stock prices, a flat U.S. dollar, and falling interest rates. The Dow Jones Industrial Average, in particular, fully recovered from the previous day’s losses and is currently trading above its 10-day moving average on the daily chart, indicating that the uptrend is continuing from a technical perspective. The yield on the 10-year U.S. Treasury note is hovering around 1.53%.
As of yesterday, Oceania currencies were gaining slight momentum in the foreign exchange market, with the AUD/USD pair attempting to rise around the 0.775 level. The EUR/AUD pair is in a stalemate, trading sideways around 1.552. The AUD/JPY pair is trading within a range of 83.2 to 84.7 and is currently attempting to rise around the 83.7 level.
Today, the Turkish Consumer Price Index is scheduled for 4:00 PM, the UK CBI Business Survey at 7:00 PM, the ECB policy rate announcement at 8:45 PM, ECB President Lagarde’s press conference at 9:30 PM, U.S. initial jobless claims and the Chicago Fed National Activity Index at 9:30 PM, and the U.S.Leading Economic Index and Existing Home Sales, at 11:30 PM the US Weekly Natural Gas Inventories, and at 12:00 AM the US Kansas City Fed Manufacturing Activity Index. We will carefully assess how today’s economic data releases impact the balance of power among currencies.
Author: Keisuke Sakurai
