Should We Keep an Eye on the Pound's Direction?
17.05.2021
- Remarks by Tenreiro, a Member of the MPC in 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. Treasuries all fell, and the VIX (fear index) also dropped to 18.18.
In the foreign exchange market, the Dollar Index—which measures the relative strength of the dollar—is trading sideways at 90.3, indicating that the U.S. dollar has once again lost its direction.The AUD/USD pair rose last weekend, reaching 0.779, but has since fallen 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, Swiss producer and import prices will be released at 15:30, Canadian housing starts at 21:15,at 9:30 PM, Canadian international securities turnover and the U.S. New York 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 UKRemarks by MPC Member Tenreiro, 23:25: Remarks by Bostic, President of the Atlanta Fed, and remarks by Clarida, Fed Vice Chair, are scheduled. Ahead of tomorrow’s UK employment report, I’d like to wait and see how the pound moves.
Author: Keisuke Sakurai
