Should we keep an eye on currency movements in Oceania?
25.05.2021
- Evans (U.S.): Remarks by the President of the Chicago Fed
- U.S. 2-Year Treasury Auction
Yesterday, the three major U.S. stock indices all rose, with the S&P 500 closing at 4,197 points, up 0.99% from the previous day. As stock prices rose, the fear index (VIX) fell to 18.4. Although the U.S. State Department advised against travel to Japan, the impact on Japanese stocks was limited, and the Nikkei 225 continued to rise today.
The foreign exchange market has seen a downward trend in U.S. long-term bonds and the U.S. dollar since yesterday’s U.S. trading session; however, this is not due to an economic slowdown. Furthermore, since the USD/JPY pair has support around 108.3 on the daily chart, traders should be cautious about chasing the market down too aggressively. Additionally, Oceania currencies have recently been unable to break out of their range, with the AUD/USD currently consolidating around 0.775.
Today’s schedule includes the German IFO Business Climate Index at 3:00 PM, the UK CBI Retail Trade Survey at 7:00 PM, remarks by Chicago Fed President Evans at 8:40 PM, and remarks by Barkin at 9:00 PM.Richmond Fed President’s remarks, at 10:00 PM the U.S. S&P Case-Shiller Home Price Index, at 11:00 PM the U.S. Consumer Confidence Index and U.S. New Home Sales, the U.S. Richmond Fed Manufacturing Index, remarks by U.S. Federal Reserve Vice Chair Quarles, and at 2:00 AM the U.S. 2-year Treasury auction are scheduled to be released.We will carefully assess whether we see any movement in the Oceania currencies, which have been trading in a range.
Author: Keisuke Sakurai
