Is it necessary to be cautious about declining liquidity?
13.08.2021
- University of Michigan Consumer Sentiment Index (Preliminary)
- Turkey: Current Account Balance
Yesterday, the three major U.S. stock indices rose slightly, resulting in a market environment characterized by rising stock prices, falling interest rates, and lower crude oil prices. The number of new U.S. unemployment insurance claims for July, released yesterday, came in at 375,000, marking an improvement. The result was in line with market expectations and represented the lowest figure since the onset of the COVID-19 pandemic. The Russell 2000 fell by about 0.28% to around 2,244.
A slight decline in the yield on 10-year U.S. Treasuries is weighing on the U.S. dollar, causing the USD/JPY pair to trade within a very narrow range of 110.3 to 110.5. However, the British pound is showing even greater weakness than the U.S. dollar, with GBP/USD falling by about 80 pips yesterday from 1.387 to 1.379.The AUD/USD pair has also declined, falling from 0.737 to 0.732.
Today’s economic indicators include Swiss producer import prices at 15:30 (Asia time), the French consumer price index (final reading) at 15:45, Turkey’s current account balance at 16:00, the Eurozonetrade balance, and during U.S. trading hours, the U.S. Import Price Index at 21:30 and the U.S. University of Michigan Consumer Sentiment Index (Preliminary) at 23:00. We will be watching closely to see if these releases trigger any significant shifts in the strength of European and U.S. currencies.
Author: Keisuke Sakurai
