Market Participants May Be on Guard Against Simultaneous Statements by Key Figures 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 stock indices in the U.S. market 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 supported the expectation that tapering will 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 particularly strong upward momentum, rising by about 150 pips from 130.04 to 131.5. On the daily chart, the downside is being firmly supported by the 120-day moving average.
Today’s economic indicators include the Turkish Consumer Confidence Index at 16:00 European time, the UK CBI Business Survey at 19:00, U.S. Existing Home Sales and the Richmond Fed Manufacturing Index at 23:00, and remarks by U.S. Federal Reserve Bank of Cleveland President Mester at 23:30:Cleveland Fed President’s remarks at 24:00, U.S. 2-year Treasury auction at 26:00, and Fed Chair Powell’s congressional testimony at 27:00.We will be closely monitoring whether the yen’s selling trend continues.
