All eyes are on the euro's direction at the end of the month
30.08.2021
- Dallas Fed Manufacturing Activity Index
- Germany: Consumer Price Index (Preliminary)
Last weekend, the three major U.S. stock indices all rose, leading to a market environment characterized by higher stock prices, bond prices, and oil prices. Like the Dow Jones Industrial Average, the Russell 2000 also rose and currently stands at 2,277. U.S. bond yields have fallen across the board, including not only 10-year bonds but also 5-year and 30-year bonds.
In the foreign exchange market, the euro is showing strength against the U.S. dollar, with the EUR/USD pair currently trading around 1.180.From a technical perspective, the pair has broken strongly above 1.178—near the 200-period SMA on the 4-hour chart—with a large bullish candle. If the upward trend continues, the next target will likely be around 1.189. However, the euro is losing momentum against the pound, and since a double top pattern is forming on the 4-hour chart, we should remain cautious of a potential decline.
Today, the Swiss KOF Leading Index is scheduled for 4:00 PM, the German Consumer Price Index (flash estimate) for 9:00 PM,South Africa’s fiscal spending at 9:00 PM, Canada’s Q2 current account balance at 9:30 PM, U.S. pending home sales at 11:00 PM, the U.S. Dallas Fed Manufacturing Activity Index at 11:30 PM, and New Zealand’s building permits at 7:45 AM the following day. With only two trading days remaining in August, we will be watching closely to see if price movements emerge that could serve as a stepping stone toward the fall market.
Author: Keisuke Sakurai
