Attention Turns to Tapering Discussions at the U.S. FOMC

Attention Turns to Tapering Discussions at the U.S. FOMC

16.06.2021

Yesterday, the three major stock indices in the U.S. market all fell, resulting in a session marked by lower stock prices, higher crude oil prices, and flat interest rates. In European markets, Germany’s DAX rebounded and hit a new all-time high. The fear index (VIX) rose slightly and is currently trading around 17.02.WTI crude oil extended its gains 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. The USD/JPY pair is trading around 110.1, unchanged from the same time yesterday.Meanwhile, the AUD/USD pair is trading within a range of 0.764 to 0.777 but is showing a gradual downward trend. Similarly, since GBP/USD has fallen below its 200-period SMA on the 4-hour chart, we should remain cautious about further downside moves just to be safe.

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, followed by China’s Industrial Production and Retail Sales at 16:00,China’s Industrial and Mining Production and Retail Sales at 16:00, the U.S. MBA Mortgage Applications Index at 20:00, Turkey’s Housing Price Index at 20:30, Canada’s Consumer Confidence Index and Wholesale Sales at 21:30,at 21:30, U.S. housing starts, building permits, and the import price index; at 23:30, U.S. weekly crude oil inventories; at 27:00, the announcement of the U.S. FOMC policy rate and statement; and at 27:30, a press conference by U.S. Federal Reserve Chair Powell are scheduled.I intend to carefully monitor how today’s U.S. FOMC meeting will affect the U.S. dollar.