Market participants may be on alert for remarks by a Fed governor during U.S. trading hours
03.08.2021
- U.S. Manufacturing Orders Index
- Remarks by Bowman, Member of the Federal Reserve Board
Yesterday, U.S. stock markets saw mixed performance, with prices largely flat amid falling interest rates and a weaker U.S. dollar. The Russell 2000 fell slightly to 2,215. U.S. June construction spending, released yesterday, came in 0.1% below market expectations; while the residential construction sector grew, the non-residential sector—including gas and oil drilling—contracted.
In the foreign exchange market, European currencies and the U.S. dollar are locked in a tight battle; the EUR/USD pair rose to 1.189 before falling back to 1.186. With the pair forming higher lows and lower highs, price action appears to be searching for direction. The GBP/USD pair has fallen slightly, but the 200-period moving average is acting as support on the 4-hour chart, so the focus will likely be on whether the pair breaks below the support level at 1.386.Meanwhile, the AUD/USD pair has risen slightly and is currently trading around 0.736.
Today’s key economic indicators include Turkey’s Consumer Price Index and Producer Price Index at 4:00 p.m., the Eurozone Producer Price Index at 6:00 p.m., the U.S. Factory Orders Index at 11:00 p.m., and remarks by Federal Reserve Governor Bowman at 3:00 a.m. We will be closely monitoring how the market, which began August with yen buying, will move ahead of this weekend’s U.S. employment report.
Author: Keisuke Sakurai
