Investors should keep an eye on economic indicators and comments from key figures in the U.S.

Investors should keep an eye on economic data releases and comments from key officials in the U.S.

10.06.2021

Yesterday, the three major U.S. stock indices all fell, creating a risk-off sentiment characterized by falling stock prices, lower 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/MoM) 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 attempting to move lower 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 3:45 PM, Turkey's unemployment rate at 4:00 PM, and the ECB policy rate announcement at 8:45 PM,ECB policy rate announcement, at 21:05 UK MPC member Holden’s remarks, at 21:30 EU ECB President Lagarde’s remarks, US initial jobless claims, US Consumer Price Index, at 23:30 US weekly natural gas inventories, at 02:00 US 30-year Treasury auction, and at 03:00 US budget balance.We will be closely monitoring today’s economic releases to see if they provide a clear direction for currency strength.