Should we be wary of the euro's strength?
19.05.2021
- Eurozone Consumer Price Index (Final)
- Release of the April FOMC Minutes
Yesterday, stock prices continued to fall in the U.S. market, resulting in a scenario of lower stock prices, a weaker U.S. dollar, and flat interest rates. The fear index (VIX) rose above 20 to 21.3. The yield on the 10-year U.S. Treasury note remained flat, settling in the 1.64% range. Additionally, Bitcoin plummeted to the $43,000 range.
In the foreign exchange market, the euro/yen pair hit a new high for the year during today’s Asian trading session and is currently trading around 133.26. From a technical perspective, the pair has already broken above the weekly resistance line, and with the next key level around 134.5, traders should pay close attention to today’s economic indicators to gauge the market’s direction.
Today’s schedule includes the UK Consumer Price Index, UK Retail Sales, and UK Producer Price Index at 3:00 PM; the Eurozone Consumer Price Index (final reading) at 6:00 PM; South African Retail Sales and the US MBA Mortgage Applications Index at 8:00 PM; the Canadian Consumer Price Index and Canadian House Price Index at 9:30 PM; and at 11:00 PM, remarks by US Federal Reserve Bank of St. Louis President:St. Louis Fed President, at 11:30 PM: US Weekly Crude Oil Inventories, at 12:35 AM: US Bostic: Atlanta Fed President’s remarks, at 2:00 AM: US 20-year Treasury auction, and at 3:00 AM: US FOMC April meeting minutes release. We will continue to monitor the situation cautiously to see if there are any significant changes in currency strength midweek.
Author: Keisuke Sakurai
