Market participants may be wary of tapering remarks at the Jackson Hole Symposium
27.08.2021
- France: Consumer Confidence Index
- University of Michigan Consumer Sentiment Index
Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by declining stock prices, flat interest rates, and lower oil prices. Stock prices have been volatile due to concerns over a resurgence of infections caused by the Delta variant of the novel coronavirus, as well as the suicide bombing near the airport in Kabul, Afghanistan. The fear index (VIX) rose by about 12% to 18.8.
The foreign exchange market is showing a slight trend toward yen appreciation, with cross-yen pairs having fallen modestly since yesterday’s European session. In particular, the Canadian dollar/yen pair—which had been gaining momentum—has fallen from 87.49 to 86.54. From a technical perspective, the pair appears to be capped by the 20-day moving average on the daily chart, and since the highs are trending lower, we should remain vigilant for a potential new low.
Today, the German Import Price Index is scheduled for 3:00 PM, the French Consumer Confidence Index for 3:45 PM, the Turkish Economic Confidence Index for 4:00 PM, the Canadian Industrial Product Prices and Raw Material Prices Index, U.S. Personal Income, the Core PCE Deflator, and U.S. Wholesale Inventories for 9:30 PM,and at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index and remarks by Fed Chair Powell at the Jackson Hole Symposium. In addition to growing concerns over geopolitical risks, we will be closely monitoring how the market reacts to Fed Chair Powell’s remarks today.
Author: Keisuke Sakurai
