Attention is likely to focus on the tapering discussions at the U.S. FOMC

Attention is likely to focus on the tapering discussions at the U.S. FOMC

16.06.2021

Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by lower stock prices, higher crude oil prices, and flat interest rates. In European markets, Germany’s DAX rebounded and hit a new record high. The VIX (fear index) rose slightly and is currently hovering around 17.02. WTI crude oil rose for the fifth consecutive day, reaching $72.30.

The yield on the 10-year U.S. Treasury note is trading flat at 1.49%, and the U.S. dollar is also in a stalemate.USD/JPY remains unchanged from the same time yesterday, trading around 110.1. Meanwhile, AUD/USD is trading within a range of 0.764–0.777 but is showing a gradual downward trend. Similarly, GBP/USD has fallen below the 200-period SMA on the 4-hour chart, so we should remain cautious about further downside moves just in case.

Today, during Asian trading hours, the UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index will be released at 15:00; China’s Industrial Production, Retail Sales, and Fixed Asset Investment at 16:00; the US MBA Mortgage Applications Index at 20:00; Turkey’s Housing Price Index at 20:30; and Canada’s Consumer Confidence Index and Wholesale Sales at 21:30.at 21:30, US Housing Starts, Building Permits, and the Import Price Index; at 23:30, US Weekly Crude Oil Inventories; at 27:00, the announcement of the US FOMC policy rate and statement; and at 27:30, a press conference by US Federal Reserve Chair Powell. We intend to carefully monitor how today’s US FOMC meeting will affect the US dollar.