Should we be wary of the upward trend in the U.S. dollar?
13.07.2021
- U.S. Consumer Price Index
- Turkey: Industrial Production Index
Yesterday, the three major U.S. stock indices all rose, hitting new record highs. The Nasdaq closed at 14,733 points, up 0.21% from the previous day, while the S&P 500 finished at 3,484 points, up 0.35%. The Russell 2000 also extended its gains slightly, closing at 2,281.
In the foreign exchange market, the Dollar Index has fallen to 92.1, weighing on the US dollar. Although the euro fell against the dollar during yesterday’s European trading session, it has since recovered and is currently trading around 1.185. On a daily chart, the pair has been trading sideways between 1.17 and 1.225, and we will need to monitor the situation closely, keeping an eye on the direction of the US dollar, to see if it will continue to rise.
Today, during Asian trading hours, the German Consumer Price Index (final reading) will be released at 15:00, followed by Swiss Producer and Import Prices at 15:30, and the French Consumer Price Index (final reading) at 15:45.during European trading hours at 16:00, Turkey’s Industrial Production Index; during U.S. trading hours at 21:30, the U.S. Consumer Price Index; and at 25:00, remarks by Bostic (President of the Atlanta Fed), Kashkari (President of the Minneapolis Fed), and Rosengren (President of the Boston Fed).We will be watching closely to see if today’s economic releases provide a clear direction for the U.S. dollar.
Author: Keisuke Sakurai
