Should We Focus on Retail Sales?
23.06.2021
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- Retail Sales (Canada)
Yesterday, the three major stock indices in the U.S. market 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 figures 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%.
In the foreign exchange market, the trend of yen selling that began earlier this week continued today. 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.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 16:15, the German Manufacturing/Services PMI at 16:30, the Eurozone Manufacturing/Services PMI at 17:00, and the UKManufacturing and Services PMI are scheduled for release. Since these are all preliminary figures, be on the lookout for significant price movements. Additionally, at 20:00, the U.S. MBA Mortgage Applications Index will be released; at 21:30, Canadian Retail Sales and the U.S. Q1 Current Account Balance;at 22:00, remarks by U.S. Federal Reserve Governor Bowman; at 22:45, U.S. Manufacturing/Services PMI; at 23:00, U.S. New Home Sales; at 23:30, U.S. Weekly Crude Oil Inventories;at 24:00, remarks by U.S. Federal Reserve Governor Bowman; at 25:00, remarks by ECB President Lagarde; and at 25:00, a U.S. 5-year Treasury auction. I want to carefully assess how the relative strength of the U.S. and European currencies will evolve.
Author: Keisuke Sakurai
