Should we keep an eye on the direction of the U.S. dollar as it trades within a range?
24.05.2021
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- Remarks by U.S. Federal Reserve Board Member Brainard
Last weekend, U.S. stock prices rose slightly, resulting in a market environment characterized by rising stocks, a flat U.S. dollar, and falling interest rates. Bonds were in demand, and the yield on the 10-year U.S. Treasury note fell to 1.62%. Additionally, following last week’s trend, Bitcoin (BTC) declined over the weekend and is currently trading in the $38,000 range. Caution is warranted, as the price could continue to fall further if it does not rebound from current levels.
In the foreign exchange market, the euro—which had been trading lower last weekend—is currently searching for direction during today’s Asian session. The EUR/JPY pair is consolidating around the 132.6 level on the hourly chart, hovering around the 200-day moving average. The euro is also trading lower against the Australian dollar, which has been losing momentum, with the EUR/AUD pair attempting to move lower around the 1.576 level.
No major economic indicators or key speeches are scheduled for today in European trading hours. At 21:30, the U.S. Chicago Fed National Activity Index will be released; at 22:00, Fed Governor Brainard will speak; and at 23:30, the UK’sBank of England Governor Bailey, UK Deputy Governor Kanliff, UK MPC Member Holden, and UK MPC Member Saunders at 23:30, remarks by US Cleveland Fed President Mester at 24:00, and remarks by US Atlanta Fed President Bostic at 25:00.We will be closely monitoring today’s key speeches to see if they provide any direction for the US dollar and European currencies.
Author: Keisuke Sakurai
