Will the decline in cross-yen pairs reverse?
16.07.2021
- Canada: Housing Starts
- Williams (U.S.): Remarks by the President of the New York Fed
Yesterday, the three major U.S. stock indices showed mixed performance, with the market characterized by falling stock prices, lower interest rates, and declining crude oil prices. In particular, WTI crude oil briefly fell by nearly 2%, but prices stabilized following reports that Saudi Arabia and the United Arab Emirates (UAE), which had been at odds, had reached an agreement.In the U.S., the number of new unemployment insurance claims released yesterday fell by about 26,000 from the previous week to 360,000, marking the lowest level since the spread of COVID-19 began.
In the foreign exchange market, the GBP/JPY pair has formed a double bottom on the hourly chart and is rebounding during today’s Asian trading session. From a technical perspective, the pair has halted its decline at the halfway point of last weekend’s rally, so we need to carefully assess whether the downtrend will continue. The current price of GBP/JPY is around 152.2.
Today’s schedule includes a press conference by Bank of Japan Governor Kuroda at 3:30 p.m., followed by the Eurozone Consumer Price Index and Trade Balance at 6:00 p.m. (European time),at 8:30 PM, Turkey’s Housing Price Index; during U.S. trading hours at 9:15 PM, Canada’s Housing Starts; at 9:30 PM, Canada’s Wholesale Sales and U.S. Retail Sales; at 10:00 PM, remarks by U.S. Federal Reserve Bank of New York President Williams; and at 11:00 PM, U.S. Foreign Direct Investment in the U.S. are scheduled. We will be watching closely to see if the cross-yen pairs, which have been weak, will recover.
Author: Keisuke Sakurai
