With tomorrow’s U.S. employment report on the horizon, all eyes are on the U.S. dollar
06.05.2021
- Remarks by Bank of England Governor Bailey
- Remarks by ECB President Lagarde
Yesterday, U.S. stock prices rose, resulting in a market environment characterized by higher stock prices, a flat U.S. dollar, and lower interest rates. European markets also rose, with France’s CAC 40 reaching its highest level since 2000. The yield on the 10-year U.S. Treasury note fell slightly and is currently around 1.58%. Gold is trading in the $1,790 range, near the upper end of its trading range.
In the foreign exchange market, among the yen crosses, USD/JPY and GBP/JPY are showing a gradual upward trend, with USD/JPY currently trading around 109.4 and GBP/JPY around 151.9. Conversely, EUR/JPY is trending downward and is trading around 131.2. EUR/USD is using the 200-period EMA on the 4-hour chart as support, and the market is now at a critical juncture to see if the decline will halt around 1.19.
Today’s schedule includes the ECB’s monthly report at 5:00 PM, the UK Services PMI (final reading) at 5:30 PM, Eurozone retail sales and remarks by RBA Governor Debelle at 6:00 PM, the Bank of England and Turkish Central Bank policy rate announcements at 8:00 PM, remarks by ECB President Lagarde at 8:15 PM,a press conference by UK BOE Governor Bailey at 8:30 PM, US initial jobless claims and Q1 nonfarm productivity (flash estimate) at 9:30 PM, remarks by US NY Fed President Williams at 10:00 PM, and remarks by US Atlanta Fed President Bostic at 2:00 AM.With tomorrow’s U.S. jobs report on the horizon, we’ll be watching to see if currency strength and weakness shift.
