Keep an eye on the strength of European currencies
07.06.2021
- Rice · Outstanding Consumer Credit
- Housing Prices in Halifax, UK
Last weekend, the three major U.S. stock indices all rose, leading to a market environment characterized by rising stock prices, higher oil prices, and lower interest rates. The Dow Jones Industrial Average closed at $34,756, just $21 shy of a new all-time high. U.S. long-term bond prices plummeted, with the yield on the 5-year Treasury note falling by more than 5 percentage points. The current yield on the 5-year Treasury note is around 0.79%.
In the foreign exchange market, the Australian dollar has been regaining strength since last weekend. The AUD/USD pair has fully recovered the 100-pip decline it suffered the day before yesterday and is currently trading around 0.773. The Australian dollar is also showing a bullish stance against the firm British pound, with the GBP/AUD pair falling from 1.845 to 1.826.The EUR/AUD pair is also on a downward trend, having fallen by about 150 pips, and continues to trend lower.
Today, German manufacturing orders are scheduled for 3:00 PM, the Swiss Consumer Price Index for 3:30 PM, the UK Halifax House Price Index for 4:30 PM, and U.S. consumer credit balances for 8:00 PM.While there are no other major economic indicators scheduled, with the Canadian central bank’s interest rate decision on Wednesday, the 9th, and the ECB’s interest rate decision on Thursday, the 10th, coming up this week, we will be closely monitoring how European currencies—which have been strengthening against the U.S. dollar—react to these announcements.
