Should we keep an eye on the direction of European currencies?
05.07.2021
- U.S. markets are closed in observance of the Independence Day holiday
- Turkey: Consumer Price Index
Last weekend, the three major U.S. stock indices all rose, leading to a market environment characterized by rising stock prices, a weaker U.S. dollar, and lower interest rates. The yield on the 10-year U.S. Treasury note has fallen below the low reached at the end of last month and currently stands at 1.42%. The upward momentum in gold prices has slowed, and the price is currently hovering in the $1,786 range.
In the foreign exchange market, cross-yen pairs are forming higher lows on the daily chart, making it a critical juncture where caution is needed to determine whether they will resume their upward trend. While GBP/JPY is forming higher lows, it is also forming lower highs, and with the pair consolidating around the 153.5 level, caution is warranted. Key data points to watch include tomorrow’s German ZEW Economic Sentiment Index and Friday’s UK Industrial Production figures.
Today’s economic calendar includes the release of Turkey’s Consumer Price Index and Producer Price Index at 4:00 p.m. CET, France’s Services PMI at 4:50 p.m., Germany’s Services PMI at 4:55 p.m., the Eurozone’s Services PMI at 5:00 p.m., and the UK’s Services PMI at 5:30 p.m. No other major economic releases are scheduled.Since all U.S. markets are closed today for the Independence Day holiday, we will monitor price movements closely while remaining vigilant for reduced volatility in the foreign exchange market.
Author: Keisuke Sakurai
