All Eyes on Remarks by U.S. Federal Reserve Chair Powell

All Eyes on Remarks by U.S. Federal Reserve Chair Powell

03.05.2021

Last weekend, the U.S. stock market pulled back, leading to falling stock prices, a stronger U.S. dollar, and lower interest rates. Although gold typically moves inversely to the U.S. dollar, it has been rising alongside the dollar’s appreciation and continues to climb, currently trading around 1,773. The yield on the 10-year U.S. Treasury note has fallen to 1.62%.

In the foreign exchange market, the Dollar Index—which measures the relative strength of the U.S. dollar—has surged to 91.3. Amid a general decline in yen crosses, the USD/JPY pair is trending higher. The USD/JPY pair has firmly broken into the 109-yen range and is currently trading around 109.45.

Today, at 4:00 p.m., Turkey’s Manufacturing PMI and Consumer Price Index (Core),Producer Price Index are scheduled to be released at 4:00 PM, followed by the Swiss Manufacturing PMI at 4:30 PM, the French Manufacturing PMI at 4:50 PM, the German Manufacturing PMI at 4:55 PM, and the Eurozone Manufacturing PMI at 5:00 PM. However, since all of these Manufacturing PMIs are final readings, their impact is likely to be limited.Additionally, as U.S. trading hours begin, the U.S. Manufacturing PMI is scheduled for 22:45, the U.S. ISM Manufacturing Index and Construction Spending for 23:00, remarks by U.S. Federal Reserve Bank of New York President Williams for 27:10, and remarks by U.S. Federal Reserve Chair Powell for 27:20.We will keep a close eye on price movements while paying close attention to Fed Chair Powell’s remarks today.