Is it necessary to be cautious about a decline in liquidity?
13.08.2021
- University of Michigan Consumer Sentiment Index (Preliminary Reading)
- 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 U.S. initial jobless 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 level since the onset of the COVID-19 pandemic.The Russell 2000 fell 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, and the USD/JPY pair is trading 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. AUD/USD has also declined, dropping from 0.737 to 0.732.
Today’s economic indicators include Swiss producer import prices at 15:30 during Asian trading hours, the French Consumer Price Index (final reading) at 15:45, Turkey’s current account balance at 16:00, the Eurozone’strade balance, and during U.S. trading hours, the U.S. Import Price Index at 21:30 and the University of Michigan Consumer Sentiment Index (preliminary) at 23:00. We will be watching these releases closely to see if they trigger any significant shifts in the strength of European and U.S. currencies.
