Will the U.S. dollar remain strong amid falling long-term interest rates?
21.06.2021
- Remarks by ECB President Lagarde
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
Last weekend, stock prices continued to fall in the U.S. market, resulting in a market environment characterized by falling stock prices, low interest rates, and high oil prices. Although WTI crude oil prices fell in the first half of the week, they rebounded toward the end of the week and are currently hovering around $71.30. Gold prices continued to decline and are trading around $1,774. The Semiconductor Index (SOX) also fell and currently stands at 3,152.
The foreign exchange market is seeing notable weakness in the pound. GBP/USD has fallen for four consecutive days, dropping about 350 pips over the past week. It is currently trading around 1.380.From a technical perspective, the pair has broken below the daily support line, and with the next support level around 1.366, this is a situation where we should be cautious about further downside potential. GBP/JPY is also falling, and the next target is likely to be around 150.6, near the weekly 20-day moving average.
Today’s key events include remarks by ECB President Lagarde at 9:30 p.m. ET, followed by the Chicago Fed National Activity Index at 10:30 p.m. ET; remarks by St. Louis Fed President Bullard at 10:30 p.m. ET; remarks by ECB President Lagarde at 11:15 p.m. ET; and remarks by New York Fed President Williams at 12:00 a.m. ET.Since prices moved significantly last week following remarks by St. Louis Fed President Bullard, we should remain cautious regarding his comments today as well, just to be safe.
Author: Keisuke Sakurai
