Market participants may be on guard against significant price fluctuations caused by weekend factors
25.06.2021
- Rosengren (U.S.): Remarks by the President of the Boston Federal Reserve Bank
- U.S. Core PCE Deflator
Yesterday, the three major U.S. stock indices all rose, resulting in a market environment characterized by higher stock prices, flat interest rates, and flat commodity prices. The VIX (fear index) remained at a low level of 15.9, while gold has not rebounded significantly from last week’s sharp drop following the FOMC meeting and is trading in the $1,776 range. The Nikkei 225 has recovered to the 29,000-yen level.
In the foreign exchange market, the strength of the U.S. dollar and the euro are in a stalemate, with the EUR/USD pair trading sideways around 1.193. This week, the EUR/USD pair has shown no clear direction and is hovering just above the 200-day moving average on the daily chart. Meanwhile, the GBP/USD pair has been falling due to the pound’s weakness and is currently trading around 1.392.
Today’s economic indicators include the German GfK Consumer Confidence Survey at 3:00 PM, the UK CBI Retail Trade Survey at 7:00 PM (European time), U.S. Personal Income and the Core PCE Deflator at 9:30 PM (U.S. time), and the University of Michigan Consumer Sentiment Index (final reading) and remarks by Kashkari at 11:00 PM (U.S. time):Remarks by Kashkari, President of the Minneapolis Fed; at 00:35, remarks by Mester, President of the Cleveland Fed; at 02:00, remarks by Rosengren, President of the Boston Fed; and at 02:30, remarks by Williams, President of the New York Fed. As it is the weekend, we should watch for price movements caused by position unwinding while assessing currency strength.
Author: Keisuke Sakurai
