Will the Decline in Cross-Yen Pairs Reverse?
16.07.2021
- Canada: Housing Starts
- U.S. — Williams: Remarks by the President of the New York Fed
Yesterday, the three major stock indices in the U.S. market showed mixed performance, with the market characterized by falling stock prices, lower interest rates, and declining crude oil prices. In particular, WTI crude oil prices fell by nearly 2% at one point, but 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 the novel coronavirus 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 GBP/JPY 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 GBP/JPY pair is currently trading around 152.2.
Today’s schedule includes a press conference by Bank of Japan Governor Kuroda at 15:30; the Eurozone Consumer Price Index and Trade Balance at 18:00 (European time); the Turkish Housing Price Index at 20:30; Canadian Housing Starts at 21:15 (U.S. time); and Canadianwholesale sales and U.S. retail sales at 21:30, remarks by U.S. Federal Reserve Bank of New York President Williams at 22:00, and U.S. securities investment data at 29:00. We will be watching closely to see if the cross-yen pairs, which have been weak, will recover.
Author: Keisuke Sakurai
