Market participants may be on guard against minor fluctuations ahead of next week’s FOMC meeting
11.06.2021
- UK Industrial Production
- Remarks by Bank of England Governor Bailey
Yesterday, U.S. stock prices rebounded, leading to a market environment characterized by rising stock prices, a weaker U.S. dollar, and lower interest rates. The U.S. Consumer Price Index released yesterday exceeded expectations, marking the highest rate of increase since August 2008 and reaffirming the resumption of economic activity. Additionally, the number of new U.S. unemployment insurance claims—released weekly—declined for the sixth consecutive week.
With yields on long-term U.S. Treasuries falling, the U.S. dollar is facing resistance on the upside.The USD/JPY pair has failed to hold the key 110.00 level and is currently trading around 109.4. Meanwhile, cross-yen pairs are showing a soft trend, though GBP/JPY remains relatively firm. GBP/JPY is currently trading around 155.1, with the daily 20-day moving average (MA) appearing to act as support. GBP/USD has also reached the upper end of its trading range and is currently trading around 1.418.
Today, at 15:00 Asia time, UK GDP, UK industrial production, UK manufacturing output, and the UK trade balance will be released; during European trading hours, at 16:00, Turkish industrial production will be released, and at 17:30, UKremarks by BOE Governor Bailey, remarks by BOE Deputy Governor Canrif, and remarks by BOE Deputy Governor Ramsden, and during U.S. trading hours at 21:30, Canada’s Q1 Capacity Utilization Rate, and at 23:00, the U.S. University of Michigan Consumer Sentiment Index (Preliminary).As traders await the U.S. FOMC meeting scheduled for the start of the week, price movements may remain modest, so it is advisable to carefully assess the market direction.
Author: Keisuke Sakurai
