Attention on European Currency Movements Following the Release of the ECB Meeting Minutes
26.08.2021
- German GFK Consumer Confidence Survey
- Europe: ECB Releases Minutes of July Governing Council Meeting
Yesterday, the three major U.S. stock indices all extended their gains, creating a “risk-on” market characterized by rising stocks, interest rates, and crude oil prices. WTI crude oil rose to 67.7.Gold fell by about 150 pips during U.S. trading hours yesterday and is currently trading around $1,786. The U.S. 10-year Treasury yield has rebounded to 1.33%, indicating that bonds are being sold off.
Contrary to the weakening U.S. dollar, the euro/dollar pair has risen in the foreign exchange market, breaking above its recent high of 1.176 on the hourly chart. From a technical perspective, the pair is currently trading just below the 20-day moving average (MA) on the daily chart, so we need to carefully assess whether it will pull back from the 20-day MA.Meanwhile, the euro remains in a stalemate against the British pound—another European currency—and is currently trading around 0.855.
Today’s economic indicators include the German GfK Consumer Confidence Survey at 15:00, the release of the minutes from the ECB’s July Governing Council meeting at 20:30, U.S. initial jobless claims and the revised U.S. second-quarter GDP at 21:30,U.S. personal consumption, at 23:30: U.S. weekly natural gas inventories, at 24:00: U.S. Kansas City Fed Manufacturing Activity Index, and at 26:00: U.S. 7-year Treasury auction. We intend to closely monitor the direction of U.S. interest rates, which have begun to rise again, and the direction of the U.S. dollar.
Author: Keisuke Sakurai
