Should We Be Wary of Rebalancing on the Last Day of the Month?
30.07.2021
- Canada · GDP
- France: Consumer Price Index (Preliminary Figures)
Yesterday, the three major U.S. stock indices all rose, with the S&P 500 closing at 4,419 points, up 0.42% from the previous day.The Russell 2000 also closed 15 points higher at 2,240. The Chinese market, where concerns had been mounting over a continued decline, rebounded strongly, with the Shanghai Composite Index closing at 3,411, up 1.49% from the previous day.
In the foreign exchange market, cross-yen pairs are declining, and GBP/JPY has pulled back from 153.4 to 152.6. However, it rebounded after finding support at the 20-period moving average on the 4-hour chart and is currently trading as it seeks direction. Similarly, EUR/JPY recovered from its decline during today’s Asian trading session and is currently trading around 130.1.
Today’s economic indicators include the French Consumer Price Index (flash estimate) at 15:45, the Swiss KOF Leading Index and Turkey’s trade balance at 16:00,at 5:00 PM, Germany’s Q2 GDP; at 6:00 PM, the Eurozone’s Q2 GDP and Eurozone Consumer Price Index; at 9:30 PM, Canada’s GDP and Industrial Production, along with U.S. Personal Income and the Core PCE Deflator; and at 10:00 PM, remarks by U.S. Federal Reserve Bank of St. Louis President Braad;St. Louis Fed President’s remarks; at 10:45 PM, the U.S. Chicago Purchasing Managers’ Index; and at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index. We will be closely monitoring whether today’s economic data releases will cause any shifts in the balance between European currencies and the U.S. dollar.
Author: Keisuke Sakurai
