Market Participants on Alert for Key Figures' Remarks in U.S. Trading Hours?
02.06.2021
- Germany: Retail Sales
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
In yesterday’s stock market, trading in the U.S.—which reopened after a long weekend—was extremely subdued, with the Dow Jones Industrial Average closing at $34,575, extending its gains. The session was characterized by flat stock prices, rising crude oil prices, and falling interest rates. European markets rebounded, with the Euro 50 closing at 4,071, up 0.8% from the previous day.The European Consumer Price Index (year-over-year) for May, released yesterday, came in at 2.0%, exceeding market expectations. This was the first time the index had reached 2% since October 2018, a development that was well-received by the market.
In Europe and the United States, where vaccination rates are rising, various currencies are strengthening against the yen amid both inflation concerns and expectations of an economic recovery, resulting in a generally weak yen trend. The USD/JPY pair, which fell during U.S. trading hours yesterday, has recovered steadily during today’s Asian trading session. It is currently trading around 109.73, having surpassed yesterday’s high.
Today, at 15:00 European time, German retail sales; at 15:45, the French budget balance;at 17:30 UK mortgage approvals, UK consumer credit balances, UK mortgage-backed securities, and UK money supply; at 18:00 the Eurozone Producer Price Index; at 20:00 the US MBA Mortgage Applications Index; and once U.S. trading hours begin, at 21:30 Canadian housing permits,at 24:45, remarks by German Bundesbank President Bahtmann; at 25:00, remarks by U.S. Philadelphia Fed President Harker; at 27:00, remarks by U.S. Atlanta Fed President Bostic; and remarks by U.S. Chicago Fed President Evans:Chicago Fed President, and U.S. Kaplan: Dallas Fed President. I want to carefully assess whether today’s Beige Book will clarify the relative strength of the U.S. dollar and European currencies.
