Attention May Turn to the Weak U.S. Dollar and Fed Chair Powell’s Congressional Testimony
15.07.2021
- U.S. Import Price Index
- Testimony by Federal Reserve Chair Powell Before Congress
Yesterday, the three major U.S. stock indices showed mixed performance, resulting in a market environment characterized by flat stock prices, lower interest rates, and a weaker U.S. dollar.Gold rose and is trading around $1,830. The fear index (VIX) fell back to 16.3. During his testimony before the U.S. Congress yesterday, Powell maintained his stance that “inflation is transitory” and remained cautious about transitioning to tapering.
In the foreign exchange market, the euro/yen pair is declining as its upside is capped by the 20-period moving average on the hourly chart.After peaking at 131.08 on Tuesday, the 13th, the pair fell to 129.89 during today’s Asian session, breaking below the key 130.00 level. If the decline continues, there is no support until around 129.6—this month’s low—so we should remain cautious about the possibility of further declines.
Today, at 21:30: U.S. Initial Jobless Claims, U.S. NY Fed Manufacturing Index, U.S. Philadelphia Fed Business Outlook Index, and U.S. Import Price Index; at 22:00: Canadian Existing Home Sales; at 22:15: U.S.Industrial Production and Capacity Utilization at 22:15, Fed Chair Powell’s Congressional Testimony at 22:30, and remarks by Chicago Fed President Evans at 24:00. We’ll be watching closely to see if the direction of the U.S. dollar—which has been the focus of attention—will become clear.
Author: Keisuke Sakurai
