Be wary of a quiet market
04.05.2021
- Cross-yen pairs are trading in a narrow range
- The USD/JPY exchange rate is rising
Yesterday, on the U.S. market, two of the three major stock indices rose, while the Nasdaq closed at 13,895 points, down 0.48% from the previous day. In remarks yesterday, Federal Reserve Chair Powell stated, “While the economy is on a recovery track, we are not out of the woods yet,” signaling that the Fed would maintain a cautious stance.
In the foreign exchange market, cross-yen pairs are generally trading in a narrow, mixed range. In particular, the AUD/JPY pair—which saw a policy rate announcement today—is trading within a very tight range of 84.4 to 84.8. The RBA announced that it would keep rates at a record low of 0.1%, reaffirming its stance to maintain ultra-loose monetary policy through 2024. The GBP/JPY pair has risen slightly and is currently trading around 151.7.
Today’s schedule includes the UK Manufacturing PMI (final reading) and mortgage approvals at 5:30 PM, Canada’s trade balance and housing starts at 9:30 PM, the U.S. trade balance at 11:00 PM, the U.S. manufacturing orders index at 11:00 PM, and remarks by San Francisco Fed President and Dallas Fed President Kaplan at 2:00 AM.Since the Japanese market is closed until tomorrow, we should remain vigilant for sudden price movements while keeping an eye on low volatility.
Author: Keisuke Sakurai
