Should We Keep an Eye on Rising Oceania Currencies?
14.07.2021
- UK Retail Price Index
- U.S. Weekly Crude Oil Inventories
Yesterday, U.S. markets fell for the first time in three days, resulting in a market environment characterized by falling stock prices, rising interest rates, and a stronger U.S. dollar.The S&P 500 closed at 4,369 points, down 0.35% from the previous day, but the decline was not significant overall and remained a minor pullback. The fear index (VIX) rose to 17.1.
In the foreign exchange market, the U.S. dollar rose after the U.S. Consumer Price Index (core, month-over-month), released yesterday during U.S. trading hours, showed a significant improvement—coming in at 0.9% versus the expected 0.4%—and reached its highest level in about 13 years.GBP/USD fell by about 100 pips from 1.390 to 1.380. Meanwhile, the New Zealand dollar rose immediately after the announcement today that the policy rate would remain unchanged at 0.25%. NZD/JPY climbed from 76.7 to 77.6.
Today’s economic indicators include the UK Consumer Price Index, Retail Price Index, and Producer Price Index at 15:00, and at 18:00, the EurozoneIndustrial Production; at 20:00, the TCMB policy rate announcement from Turkey; at 21:30, the U.S. Producer Price Index; at 23:00, the BOC policy rate announcement from Canada; at 23:30, U.S. weekly crude oil inventories;at 24:00, a press conference by BOC Governor Maclean; at 25:00, testimony by Fed Chair Powell before Congress; and at 27:00, the U.S. Federal Reserve Beige Book.I intend to carefully monitor how midweek price movements will be affected by today’s economic data releases.
