Attention is likely to focus on the outcome of the U.S. 2-year Treasury auction

Attention is likely to focus on the outcome of the U.S. 2-year Treasury auction

26.07.2021

Last weekend, the Dow Jones and Nasdaq hit all-time highs in the U.S. market, ending the week on a broad-based rally amid a risk-on sentiment. Carrying over the upward momentum from last weekend, the Nikkei 225 is trading today at nearly 27,800 yen, up just over 1% from the previous day. The fear index (VIX) has fallen by nearly 30% and is hovering around 17.2.

The foreign exchange market opened without any significant gaps and has shown a slight trend toward yen appreciation during today’s Asian session. However, given the global uptrend in stock markets and the support at the lower end of the dollar index, we should exercise caution in assessing whether cross-yen pairs will experience a significant decline. Additionally, the pound has been firming during today’s Asian session, with GBP/USD attempting a gradual rise and rebounding to 1.375.

Today, at 4:00 p.m. CET, Turkey’s Economic Sentiment Index and Capacity Utilization Rate will be released, followed by Germany’sIFO Business Climate Index at 17:00, remarks by a member of the Bank of England’s MPC at 20:00, U.S. New Home Sales at 23:00 U.S. time, the Dallas Fed Manufacturing Activity Index at 23:30, and a U.S. 2-year Treasury auction at 26:00.With the US Consumer Confidence Index scheduled for tomorrow, Tuesday the 27th, and the FOMC policy rate announcement on Wednesday the 28th, the US dollar may trade in a directionless manner until then, so we should be cautious about price movements at the start of the week.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran