Should We Keep an Eye on the U.S. Dollar's Movements Against European Currencies?
19.08.2021
- Canada: Housing Price Index
- U.S. Weekly Natural Gas Inventories
Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, flat interest rates, and lower crude oil prices. The yield on the 10-year U.S. Treasury note remained flat in the 1.26% range, while gold failed to reach $1,800 and resumed its downward trend, currently trading in the $1,777 range.
In the foreign exchange market, the U.S. dollar has emerged as the strongest currency, with the GBP/USD pair hitting a new low for the month, falling to 1.371.From a technical perspective, GBP/USD is falling as it is capped by the 20-period moving average (MA) on the 4-hour chart. Since it has already fallen below the 20-period MA on the daily chart, caution is warranted regarding a potential downtrend for the time being. Similarly, AUD/USD is also declining and is currently trading around 0.719.
Today, the Swiss trade balance is scheduled for release at 15:00 Asia time; at 21:30 U.S. time, U.S. initial jobless claims, the Canadian housing price index, and the U.S. Philadelphia Fed Business Outlook Index will be released; and at 23:00, the U.S.Leading Economic Index, and at 23:30, the U.S. weekly natural gas inventory report. I want to carefully assess how the U.S. dollar, which is once again showing an upward trend, will perform against European currencies.
Author: Keisuke Sakurai
