Attention is likely to focus on remarks by the Bank of England governor and key Federal Reserve officials

Attention is likely to focus on remarks by the Bank of England governor and key Federal Reserve officials

11.05.2021

Yesterday, the three major U.S. stock indices all fell, with the S&P 500 closing at 4,188 points, down 1.04% from the previous day. The Dow Jones Industrial Average, which had recently hit a new high, fell for the first time in three trading days. Meanwhile, copper prices hit a record high, and aluminum prices are trading near their highest levels in three years.

In the foreign exchange market, the euro has been weakening, with the euro-dollar exchange rate falling to 1.212. The euro has also declined against the pound and the yen. However, as vaccination efforts in Europe—which had lagged behind those in the U.S.—are gradually gaining momentum, and with an economic recovery expected in Europe, investors should be cautious about excessive selling pressure.

Today’s schedule includes Turkey’s industrial production and current account balance at 4:00 PM, Germany’s ZEW Economic Sentiment Survey at 6:00 PM, the U.S. NFIB Small Business Optimism Index at 7:00 PM, the U.S. JOLTS Job Openings and Labor Turnover Survey at 11:00 PM, remarks by Bank of England Governor Bailey at 11:30 PM, and remarks by U.S. Federal Reserve Governor Williams:NY Fed President, at 1:00 AM: Remarks by Fed Governor Brainard, at 2:00 AM: U.S. 3-year Treasury auction and remarks by U.S. Daily: San Francisco Fed President, and at 2:15 AM: Remarks by U.S. Bostic: Atlanta Fed President. I intend to carefully monitor how currency strength shifts in response to today’s economic data releases and key speeches.