Should We Keep an Eye on ECB Policy Rate Movements?
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” market characterized by rising stock prices, a flat U.S. dollar, and falling interest rates. In particular, the Dow Jones Industrial Average fully recouped the previous day’s losses and, since it is trading above the 10-day moving average on the daily chart, the uptrend is continuing from a technical perspective.The yield on the 10-year U.S. Treasury note is trading 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 0.775. 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 near 83.7.
Today’s schedule includes the Turkish Consumer Price Index at 4:00 p.m., the UK CBI Business Survey at 7:00 p.m., the ECB policy rate announcement at 8:45 p.m., a press conference by ECB President Lagarde at 9:30 p.m., and at 9:30 p.m., the U.S.Initial Jobless Claims and the Chicago Fed National Activity Index, at 11:00 PM the U.S. Leading Economic Index and Existing Home Sales, at 11:30 PM the U.S. Weekly Natural Gas Inventories, and at 12:00 AM the U.S. Kansas City Fed Manufacturing Activity Index are scheduled for release.We will carefully assess how today’s economic data releases affect the balance of power among currencies.
Author: Keisuke Sakurai
