All eyes are on remarks by Fed Chair Powell
03.05.2021
- MIS Manufacturing Index
- Remarks by U.S. Federal Reserve Chair Powell
Last weekend, the U.S. stock market fell, leading to a scenario of lower 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 hovering 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. While most yen crosses are generally falling, the USD/JPY pair is trending higher. The USD/JPY has firmly broken above the 109-yen level and is currently trading around 109.45.
Today, Turkey’s Manufacturing PMI, Core Consumer Price Index, and Producer Price Index are scheduled for release at 4:00 PM, followed by Switzerland’s Manufacturing PMI at 4:30 PM, France’s Manufacturing PMI at 4:50 PM, Germany’s Manufacturing PMI at 4:55 PM, and the Eurozone Manufacturing PMI at 5:00 PM. However, since these are all 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 today’s remarks by Federal Reserve Chair Powell.
Author: Keisuke Sakurai
