Should we keep an eye on the balance of Western currencies?

Should we keep an eye on the balance of Western currencies?

31.08.2021

Yesterday, two major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, lower interest rates, and flat crude oil prices. The Dow Jones Industrial Average continued to trade sideways near its highs, closing at $35,399, down 0.16% from the previous day. The Semiconductor Index (SOX) traded higher and currently stands at 3,446.

The yield on the 10-year U.S. Treasury note has been trending lower, and as a result, the euro has risen against the U.S. dollar during today’s Asian trading session, climbing from 1.178 to 1.182. From a technical perspective, the pair has already broken above the 200-day moving average on the 4-hour chart, and the next target around 1.189 is likely to serve as a key level. With the U.S. jobs report due this weekend, we will first be watching price movements leading up to the release.

Today, during European trading hours, the French Consumer Price Index (flash estimate) will be released at 15:45, followed by Turkey’s trade balance at 16:00, Germany’s unemployment rate at 16:55, UK mortgage approvals at 17:30, and the Eurozone Consumer Price Index (flash estimate) at 18:00.during U.S. trading hours: Canada’s GDP at 21:30, the U.S. S&P/Case-Shiller Home Price Index at 22:00, the U.S. Chicago PMI at 22:45, and the U.S. Consumer Confidence Index at 23:00. I want to carefully assess whether today’s U.S. economic data releases will clarify the balance between the U.S. dollar and the euro.