Attention on the outcome of the U.S. 2-year Treasury auction
26.07.2021
- Remarks by a member of the Bank of England’s Monetary Policy Committee
- U.S. 2-Year Treasury Auction
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, 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.
Author: Keisuke Sakurai
