Should we keep an eye on the pound's direction?
17.05.2021
- Remarks by MPC Member Tenreiro of the UK
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
Last weekend, the three major U.S. stock indices all rose, leading to a market environment characterized by rising stock prices, a weaker U.S. dollar, and lower interest rates. Yields on 5-, 10-, and 30-year U.S. Treasury bonds all fell, and the VIX (fear index) also dropped to 18.18.
In the foreign exchange market, the Dollar Index—which measures the dollar’s relative strength—has remained flat at 90.3, indicating that the U.S. dollar has once again lost its direction. The AUD/USD pair rose last weekend to reach 0.779, but fell during today’s Asian trading session and is currently trading around 0.775. The EUR/USD pair has also fallen, while the GBP/USD pair has risen slightly.
Today, at 3:30 PM, Swiss producer and import prices; at 9:15 PM, Canadian housing starts; at 9:30 PM, Canadian international securities turnover and the U.S. NY Fed Manufacturing Index;at 10:00 PM, Canadian existing home sales; at 11:00 PM, the U.S. NAHB Housing Market Index; at 11:05 PM, remarks by U.S. Federal Reserve Vice Chair Clarida; at 11:15 PM, remarks by UK MPC member Tenreiro; and at 11:25 PM, remarks by U.S. Atlanta Fed President Bostic and U.S. Federal Reserve Vice Chair Clarida.With tomorrow’s UK employment data on the horizon, I’d like to wait and see how the pound moves.
Author: Keisuke Sakurai
