Should we keep an eye on the balance of power between the U.S. dollar and European currencies?
29.04.2021
- The U.S. dollar is weakening
- Rice · Personal Consumption
Yesterday, the three major U.S. stock indices saw mixed performance, with the S&P 500—which saw particularly little movement—closing at 4,183, down 0.08% from the previous day. Following the FOMC’s statement yesterday indicating signs of economic recovery and suggesting future growth in consumer spending and increased mobility, crude oil prices have rebounded to $64.00.
In the foreign exchange market, the USD/JPY pair—which plummeted immediately after yesterday’s FOMC meeting—has been on a recovery trend, climbing from around 108.4 to the 108.7 level. In a speech delivered during Asian trading hours today, U.S. President Biden stated that “the United States has regained its vitality,” while announcing a $1.8 trillion economic relief package and revealing plans to fund it through taxes on the wealthy.
Today, at 4:00 PM, Turkey’s Economic Sentiment Index; at 4:55 PM, Germany’s Unemployment Rate; at 8:30 PM, remarks by Bundesbank President Baitman; at 9:00 PM, Germany’s Consumer Price Index (flash estimate);at 9:30 PM, U.S. Initial Jobless Claims, U.S. Q1 GDP (flash estimate), U.S. Personal Consumption Expenditures, and U.S. Core PCE Deflator; at 11:00 PM, U.S. Pending Home Sales; and at 12:00 AM, remarks by U.S. Federal Reserve Vice Chair Quarles. While remaining vigilant for end-of-month price movements, we will closely monitor currency strength and weakness.
Author: Keisuke Sakurai
