Keep an eye on the Manufacturing/Services PMI (flash estimates)
23.07.2021
- Europe and the U.S.: Manufacturing/Services PMI (Preliminary)
- UK Retail Sales
Yesterday, U.S. stock prices continued to rise, albeit modestly, resulting in a market environment characterized by higher stock prices, flat interest rates, and higher crude oil prices. WTI crude oil, in particular, saw a significant rebound, rising to $71.60 and surpassing its opening level at the start of the week. As stock prices rose, the fear index (VIX) fell to 17.6. The yield on the 10-year U.S. Treasury note is currently in the 1.28% range.
In the foreign exchange market, the rally in cross-yen pairs has lost momentum, and GBP/JPY is trading around 151.7. GBP/JPY, which had been rebounding from 148.5, has shifted to a consolidation phase near the 200-period SMA on the hourly chart, indicating that upward momentum is waning. Similarly, GBP/USD is consolidating above the 200-period SMA on the hourly chart; however, depending on the movement of the U.S. dollar, there is a possibility of another decline, so traders should remain cautious about chasing the downside.
Today’s economic indicators include UK retail sales at 3:00 PM, French manufacturing and services PMIs at 4:15 PM, German manufacturing and services PMIs at 4:30 PM, Eurozone manufacturing and services PMIs at 5:00 PM, UK manufacturing and services PMIs at 5:30 PM, Canadian retail sales at 9:30 PM,and U.S. Manufacturing/Services PMI at 10:45 PM. Today’s PMI data could provide insights into whether economic trends in these countries have peaked, so we will monitor the results closely while assessing price movements over the weekend.
Author: Keisuke Sakurai
