Keep an eye on the direction of the weakening U.S. dollar
26.04.2021
- The euro is holding steady
- U.S. 2- and 5-Year Treasury Auction
Last weekend, all three major U.S. stock indices rose, with the S&P 500 closing at 4,180 points, up 1.09% from the previous day. Long-term bond yields remained flat, with the yield on the 10-year U.S. Treasury note at 1.57%. Crude oil rose slightly to $61.90, while gold remained flat at $1,780.
In the foreign exchange market, the U.S. dollar is trading weakly against the yen and European currencies. The GBP/USD pair rose during today’s Asian trading session and is currently hovering around 1.390. The AUD/USD pair is also up, rising from 0.773 to 0.777. The Australian dollar is the strongest currency in today’s Asian trading session. The USD/JPY pair is falling gradually and is testing support around 107.7.
Today, the German IFO Business Climate Index is scheduled for 5:00 PM, U.S. durable goods orders for 9:30 PM, the Dallas Fed Manufacturing Activity Index for 11:30 PM, a U.S. 2-year Treasury auction for 12:30 AM, and a U.S. 5-year Treasury auction for 2:00 AM.This week, the Bank of Japan’s monetary policy decision is scheduled for Tuesday the 27th, the U.S. FOMC interest rate announcement for Wednesday the 28th, and the Eurozone employment report for Friday the 30th. We will be watching closely for shifts in the strength of the U.S. dollar and European currencies.
Author: Keisuke Sakurai
