Be mindful of the rebalancing on the last day of the month
30.07.2021
- Canada's GDP
- France: Consumer Price Index (Preliminary)
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, also 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 falling, with GBP/JPY retreating 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 earlier losses during today’s Asian session and is currently trading around 130.1.
Today’s economic indicators include: France’s Consumer Price Index (flash estimate) at 3:45 PM, Switzerland’s KOF Leading Index and Turkey’s Trade Balance at 4:00 PM, Germany’s Q2 GDP at 5:00 PM, the Eurozone’s Q2 GDP and Eurozone Consumer Price Index at 6:00 PM, and Canada’s 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. St. Louis Fed President Bullard, at 22:45, the U.S. Chicago PMI, and at 23:00, 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
