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,President of the Minneapolis Fed; at 24:35, remarks by U.S. Fed President Mester of the Cleveland Fed; at 26:00, remarks by U.S. Fed President Rosengren of the Boston Fed; and at 28:00, remarks by U.S. Fed President Williams of the New York Fed.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
