Caution Over 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 falling stock prices, flat interest rates, and lower crude 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 falling modestly since yesterday’s European trading 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 is being capped by the 20-day moving average (MA) on the daily chart. Since the highs are trending lower, it is prudent to remain vigilant for a potential new low.
Today, the German Import Price Index is scheduled for 15:00, the French Consumer Confidence Index for 15:45, the Turkish Economic Confidence Index for 16:00, the Canadian Industrial and Raw Material Price Indices for 21:30, U.S. Personal Income, the Core PCE Deflator, and U.S. Wholesale Inventories,and at 11:00 p.m., the U.S. University of Michigan Consumer Sentiment Index and remarks by Fed Chair Powell at the Jackson Hole Symposium are scheduled. 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
