Market participants may be on alert for comments from key figures in the U.S.

Market participants may be on alert for comments from key figures in the U.S.

02.06.2021

Yesterday, the U.S. stock market saw very little movement following the long weekend, with the Dow Jones Industrial Average closing at $34,575, extending its gains.The day saw flat stock prices, rising crude oil prices, and falling interest rates. European markets rebounded, with the Euro Stoxx 50 closing at 4,071, up 0.8% from the previous day. The Eurozone’s May consumer price index (year-on-year), released yesterday, came in at 2.0%, exceeding market expectations. This marks the first time the rate has 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 broadly 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, during European trading hours, German retail sales will be released at 3:00 PM, followed by the French budget balance at 3:45 PM,at 17:30 UK mortgage approvals, UK consumer credit balances, UK mortgage lending, and UK money supply; at 18:00 the Eurozone Producer Price Index; at 20:00 the US MBA Mortgage Applications Index; and once US trading hours begin, at 21:30 Canadian housing starts,at 24:45, remarks by Bundesbank President Baitman; at 25:00, remarks by U.S. Federal Reserve Bank of Philadelphia President Harker; at 27:00, remarks by U.S. Federal Reserve Bank of Atlanta President Bostic, U.S. Federal Reserve Bank of Chicago President Evans, and U.S. Federal Reserve Bank of Dallas President Kaplan.We will carefully assess whether today’s Beige Book will clarify the relative strength of the U.S. dollar and European currencies.