Amid a summer lull in the market, should we keep an eye on the pound’s upside potential?
09.08.2021
- Germany's Trade Balance
- U.S. JOLTS Survey
Last weekend, stock prices rose in the U.S. market, leading to a “risk-on” market characterized by higher stock prices, higher interest rates, and lower crude oil prices. The U.S. employment report released on the 6th—the last day of the weekend—significantly exceeded market expectations, with nonfarm payrolls coming in at 943,000.The unemployment rate also fell from 5.9% to 5.4%, which had a positive impact on the market. In response to the U.S. employment report, yields on both long-term and short-term U.S. Treasuries have risen.
In the foreign exchange market, the U.S. dollar emerged as the strongest among major currencies, with the USD/JPY pair rising to 110.35.GBP/USD fell, briefly touching 1.385, but the decline was limited due to the pound’s resilience. Since the pound is showing strength against the euro and Oceania currencies, traders should remain cautious about chasing higher prices just in case.
Today, Germany’s trade balance is scheduled for release at 15:00 Asia time, followed by the U.S. JOLTS survey and remarks by Bostic, President of the Atlanta Fed, at 23:00 U.S. time, and remarks by Birkin, President of the Richmond Fed, at 25:00.Since the markets in Singapore and Japan are closed today, be on the lookout for sudden price fluctuations. Additionally, with the U.S. Consumer Price Index (CPI) set to be released this Wednesday, the 11th, and market participation generally expected to be lower this week, remain vigilant for sharp price movements.
Author: Keisuke Sakurai
