Will the U.S. dollar weaken and European currencies strengthen?
21.05.2021
- Remarks by ECB President Lagarde
- Total Retail Sales
Yesterday, the three major U.S. stock indices all rebounded, with the Dow Jones Industrial Average closing at $34,084, up $188 from the previous day. The U.S. Philadelphia Fed Business Outlook Index for May (month-over-month), released yesterday, came in at 31.5, below the forecast of 41.0, and the outlook for the next six months has also worsened; however, this appeared to have little impact on stock prices.
In the foreign exchange market, the Swiss franc, which had been falling from its recent highs, has rebounded, and the CHF/JPY pair is currently trading around 121.3. It is now just shy of this year’s high of 121.53, while the USD/CHF pair is trading around 0.896.
Today, during European trading hours, UK retail sales will be released at 15:00, the Turkish consumer confidence index at 16:00, the French manufacturing/services PMI at 16:15, and the GermanManufacturing/Services PMI, at 17:00 the Eurozone Manufacturing/Services PMI, and at 17:30 the UK Manufacturing/Services PMI. As these are all preliminary figures, please be aware of the potential for sharp price movements.Additionally, at 8:00 PM, ECB President Lagarde is scheduled to speak, and as U.S. trading hours begin, Canadian Retail Sales are scheduled for 9:30 PM, U.S. Manufacturing/Services PMI (flash estimates) for 10:45 PM, and U.S. Existing Home Sales for 11:00 PM. While remaining vigilant for price movements caused by position unwinding ahead of the weekend, we will continue to closely monitor price trends with caution.
Author: Keisuke Sakurai
