Market participants may be on alert for remarks by key figures scheduled during U.S. trading hours
22.06.2021
- Testimony by Federal Reserve Chair Powell before Congress
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
Yesterday, the three major U.S. stock indices all rose, marking a return to a risk-on market characterized by higher stock prices, higher interest rates, and higher commodity prices. Gold rebounded and is currently trading around $1,787. In remarks made yesterday by U.S. Federal Reserve Bank of St. Louis President Bullard, he stated that “it is appropriate to begin discussions on tapering quantitative easing,” a comment that supports the expectation that tapering will soon begin in earnest.
Amid a risk-on sentiment, cross-yen pairs have rebounded since yesterday’s European session and are continuing to rise during today’s Asian session. Among the cross-yen pairs, the euro/yen has shown the strongest upward momentum, rising by about 150 pips from 130.04 to 131.5. On the daily chart, the downside is finding solid support at the 120-day moving average.
Today’s economic indicators include the Turkish Consumer Confidence Index at 16:00 CET, the UK CBI Business Survey at 19:00, U.S. Existing Home Sales and the Richmond Fed Manufacturing Index at 23:00, remarks by Cleveland Fed President Mester at 23:30, and remarks by Daily at 24:00.Remarks by San Francisco Fed President Daly, a 2:00 AM US 2-year Treasury auction, and at 3:00 AM, Fed Chair Powell’s congressional testimony. We will be closely monitoring whether the yen-selling trend continues.
Author: Keisuke Sakurai
