Should We 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 path to recovery, we are not yet out of the woods,” signaling that the Fed would maintain a cautious stance.
In the foreign exchange market, cross-yen pairs are generally showing little movement and mixed trends; in particular, the AUD/JPY pair—which saw a policy rate announcement today—is trading within a very narrow range of 84.4 to 84.8.The Reserve Bank of Australia (RBA) announced 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, the UK Manufacturing PMI (final reading) and mortgage approvals are scheduled for 5:30 p.m., Canada’s trade balance and housing starts, along with the U.S. trade balance, are scheduled for 9:30 p.m., the U.S. Manufacturing Orders Index is scheduled for 11:00 p.m., and the U.S. Daily:remarks by the President of the Federal Reserve Bank of San Francisco and remarks by Kaplan, President of the Federal Reserve Bank of Dallas. Since the Japanese market is closed until tomorrow, we should be mindful of low volatility while remaining on guard for sudden price movements.
Author: Keisuke Sakurai
