Should We Keep an Eye on Retail Sales?
23.06.2021
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- Total Retail Sales
Yesterday, the three major U.S. stock indices all rose, resulting in a market environment characterized by higher stock prices, a weaker U.S. dollar, and flat commodity prices. U.S. existing home sales, released yesterday, came in at 5.8 million units, exceeding market expectations, though the figure itself marked the fourth consecutive monthly decline. The yield on the 10-year U.S. Treasury note has fallen again to 1.46%.
The trend of yen selling that began earlier this week continued today in the foreign exchange market. The Canadian dollar, in particular, has gained momentum; the CAD/JPY pair, which had briefly hit a monthly low of 87.96, has recovered to 89.9—the 61.8% retracement level—over the past two days. Meanwhile, the USD/CAD pair has pulled back, falling from this month’s high of 1.248 to 1.230.
Today, the French Manufacturing/Services PMI is scheduled for release at 4:15 PM, the German Manufacturing/Services PMI at 4:30 PM, the Eurozone Manufacturing/Services PMI at 5:00 PM, and the UK Manufacturing/Services PMI at 5:30 PM. As these are all preliminary figures, we should be on the lookout for significant price movements.Additionally, at 8:00 PM, the U.S. MBA Mortgage Applications Index will be released; at 9:30 PM, Canadian Retail Sales and the U.S. Q1 Current Account Balance; at 10:00 PM, remarks by U.S. Federal Reserve Governor Bowman; at 10:45 PM, the U.S. Manufacturing/Services PMI; at 11:00 PM, U.S. New Home Sales; at 11:30 PM, U.S. Weekly Crude Oil Inventories;at 12:00 AM, remarks by Bostic, President of the Atlanta Fed; at 1:00 AM, remarks by Lagarde, President of the ECB; and at 1:00 AM, the U.S. 5-year Treasury auction. We will be closely monitoring how the strength of the U.S. and European currencies evolves.
Author: Keisuke Sakurai
