Should we keep an eye on the direction of the rebounding U.S. dollar?
23.08.2021
- U.S. Existing Home Sales
- European Manufacturing/Services PMI
Last weekend, the three major U.S. stock indices all rose, resulting in a market environment characterized by rising stock prices, higher interest rates, and flat crude oil prices. The Russell 2000 also rose steadily, trading around 2,167. Gold continues to consolidate just shy of the key $1,800 level and is currently trading in the $1,787 range.
The foreign exchange market opened without any significant gaps.The yen is under selling pressure today, leading to a weakening trend. In particular, the CAD/JPY pair—which was driven by Canada’s June retail sales data released last weekend on the 20th, which exceeded expectations on a year-over-year basis—rebounded sharply from a session low of 84.67 and is currently trading at 86.10. The Canadian dollar is also showing strength against the U.S. dollar; the USD/CAD pair fell sharply from a session high of 1.294 and is currently trading around 1.276.
Today, during European trading hours, the French Manufacturing/Services PMI will be released at 16:15, the German Manufacturing/Services PMI at 16:30, the Eurozone Manufacturing/Services PMI at 17:00, and the UKmanufacturing and services PMIs, and during U.S. trading hours, the Chicago Fed National Activity Index at 21:30, U.S. manufacturing and services PMIs at 22:45, and U.S. existing home sales at 23:00. We will be closely monitoring whether today’s economic releases will cause any shifts in the U.S. dollar, which has recently been rebounding.
Author: Keisuke Sakurai
