Investors Should Keep an Eye on Economic Indicators and Key Officials' Remarks in U.S. Trading Hours
10.06.2021
- Europe: ECB Policy Rate and Statement Release
- U.S. Consumer Price Index
Yesterday, the three major U.S. stock indices all fell, creating a risk-off sentiment characterized by falling stock prices, lower crude oil prices, and declining interest rates. Bonds were bought, and the yield on the 10-year U.S. Treasury note fell below 1.5% for the first time in about a month, trading in the 1.47% range.The U.S. Consumer Price Index (core, month-over-month), to be released today, is expected to come in at 0.5%, but caution is warranted as a reading above expectations could trigger a decline in stock prices and a rise in the U.S. dollar.
Amid falling yields on 10-year U.S. Treasuries, the yen’s weakness has become apparent, causing the USD/JPY pair to rebound and recover to the 109.6 level. However, other yen crosses are trading lower; GBP/JPY fell by about 80 pips yesterday and is currently testing lower levels around 154.58.GBP/USD is also down and is currently trading around 1.415.
Today’s economic indicators include France’s industrial production and manufacturing production index at 15:45, Turkey’s unemployment rate at 16:00, the ECB’s policy rate announcement at 20:45, remarks by MPC member Holden at 21:05, and at 21:30, theECB President Lagarde’s remarks, U.S. initial jobless claims, and U.S. Consumer Price Index at 21:30, and U.S. weekly natural gas inventories at 23:30, a U.S. 30-year Treasury auction at 26:00, and the U.S. budget balance at 27:00.We will be watching closely to see if today’s economic data releases provide a clear direction for currency strength and weakness.
Author: Keisuke Sakurai
