Should We Keep an Eye on the Direction of the Rising U.S. Dollar?
27.05.2021
- Remarks by Bahtman, President of the German Central Bank
- U.S. Personal Consumption
Yesterday, U.S. stock prices rose slightly, leading to a market environment characterized by higher stock prices, a stronger U.S. dollar, and lower interest rates.The Dow Jones Industrial Average closed at $34,323, up 0.03% from the previous day, with shares of sportswear maker Nike and construction equipment giant Caterpillar seeing strong buying. The Semiconductor Index (SOX) also rose slightly, up 0.2% from the previous day.
In the foreign exchange market, the AUD/USD pair continues to trade within a range, currently hovering around 0.774 near the lower boundary of that range. From a technical perspective, it appears to be forming a triple top on the daily chart; however, since the highs are rising, we should keep a close eye on the direction of the U.S. dollar and adopt a wait-and-see approach, ready to follow the trend should a significant move occur.
Today, at 3:00 p.m., Switzerland’s trade balance will be released,at 8:00 p.m., remarks by a member of the UK’s Bank of England MPC; and at 9:00 p.m., remarks by German Bundesbank President Weidmann. In U.S. time, at 9:30 p.m., U.S. initial jobless claims, U.S. durable goods orders, and U.S. first-quarter GDP (revised);U.S. personal consumption, at 23:00: U.S. pending home sales, at 23:30: U.S. weekly natural gas inventories, at 24:00: U.S. Kansas City Fed Manufacturing Activity Index, and at 26:00: U.S. 7-year Treasury auction.I’d like to wait and see if there will be any significant changes in price movements at the end of the month, while keeping an eye on currency strength and weakness.
Author: Keisuke Sakurai
