Should We Keep an Eye on Changes in the Strength of U.S. and European Currencies?
08.07.2021
- Press Conference by ECB President Lagarde
- Swiss Employment Statistics
Yesterday, the three major stock indices in the U.S. market all rebounded, with the Dow Jones Industrial Average closing at $34,681, up 0.30% from the previous day.An OECD report released yesterday stated that “employment levels will not return to pre-pandemic levels until late 2022 or later,” indicating that the economy is still in the midst of recovery.
As the yield on the 10-year U.S. Treasury note fell below 1.4% to 1.31%, returning to levels last seen in February of this year, the decline in the U.S. dollar has paused. Although GBP/USD rebounded during U.S. trading hours yesterday, it gave up all its gains and fell to this week’s low of 1.375.Since GBP/USD continues to decline while being capped by the 75-period moving average on the 4-hour chart, this is a phase where we need to closely monitor whether this trend will continue.
Today’s key economic indicators include the Swiss employment report at 14:45 during Asian trading hours, the German current account balance at 15:00,at 20:00 during European trading hours: the results of the ECB’s review of its monetary policy strategy; at 21:30 during U.S. trading hours: U.S. initial jobless claims and a press conference by ECB President Lagarde; and at 24:00: U.S. weekly crude oil inventories.I intend to watch the situation carefully to see how the relative strength between European currencies and the U.S. dollar evolves.
Author: Keisuke Sakurai
