Caution Over Significant Price Fluctuations Due to Weekend Factors?
25.06.2021
- Rosengren (U.S.): Remarks by the President of the Boston Fed
- 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 fear index (VIX) remained at a low level of 15.9, and gold has not rebounded significantly from last week’s sharp drop following the FOMC meeting, trading in the $1,776 range.The Nikkei 225 has recovered to the 29,000-yen range.
In the foreign exchange market, the strength of the U.S. dollar and the strength of the euro are in a stalemate, causing the EUR/USD pair to consolidate 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 trending lower due to the pound’s weakness and is currently trading around 1.392.
Today's economic indicators include the GfK Consumer Confidence Survey in Germany at 15:00,GFK Consumer Confidence Survey at 15:00; the UK CBI Retail Trade Survey at 19:00 European time; U.S. Personal Income and the Core PCE Deflator at 21:30 U.S. time; and the University of Michigan Consumer Sentiment Index (final reading) and remarks by Kashkari,Minneapolis Fed President’s remarks; at 24:35, U.S. Mester, President of the Cleveland Fed, remarks; at 26:00, U.S. Rosengren, President of the Boston Fed, remarks; and at 28:00, U.S. Williams, President of the New York Fed, remarks.As it is the weekend, we should keep an eye on price movements caused by position unwinding while assessing currency strength and weakness.
Author: Keisuke Sakurai
