Be mindful of the rebalancing on the last day of the month

Be mindful of the rebalancing on the last day of the month

30.07.2021

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, with GBP/JPY falling back from 153.4 to 152.6. However, the pair rebounded after finding support at the 20-period moving average on the 4-hour chart and is currently trading sideways as it seeks direction. Similarly, EUR/JPY recovered from its earlier decline during today’s Asian session and is currently trading around 130.1.

Today’s economic indicators include the French Consumer Price Index (flash estimate) at 3:45 PM, the Swiss KOF Leading Index and Turkish Trade Balance at 4:00 PM, German Q2 GDP at 5:00 PM, Eurozone Q2 GDP and Eurozone Consumer Price Index at 6:00 PM, and Canadian GDP at 9:30 PM,Canada’s Industrial Production and U.S. Personal Income and Core PCE Deflator, at 22:00, remarks by U.S. Federal Reserve Bank of St. Louis President Bullard, at 22:45, the U.S. Chicago Purchasing Managers’ Index, and at 23:00, the U.S. University of Michigan Consumer Sentiment Index. We will closely monitor whether today’s economic data releases will cause any shifts in the balance between European currencies and the U.S. dollar.

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