Keep an eye on currency strength at the start of the week
06.09.2021
- U.S. and Canadian markets are closed for a holiday
- UK Construction PMI
Last weekend, U.S. stock prices fell, creating a risk-off sentiment characterized by lower stock prices, higher interest rates, and lower oil prices. The Russell 2000 fell about 0.52% from the previous day to 2,292, the yield on the 10-year U.S. Treasury note rose to 1.32%, and gold prices climbed to the $1,825 range. The VIX index remained flat around 16.4.
In the foreign exchange market, the euro/dollar pair surged following the decline in the U.S. dollar that began last weekend. The euro/dollar briefly touched 1.190 but has since pulled back during today’s Asian trading session and is currently trading around 1.186. While the euro remains firm against the U.S. dollar, it has been trending lower against the pound, marking its third consecutive day of decline. The euro/pound is currently trading around 0.856.
As for today’s economic indicators, German manufacturing orders are scheduled for 3:00 PM, the UK Construction PMI for 5:30 PM, and remarks by a member of the Bank of England’s Monetary Policy Committee (MPC) for 8:10 PM; other than these, no major economic indicators or remarks by key figures are scheduled.With the Bank of Canada’s interest rate decision on Wednesday, the 8th, and the ECB’s interest rate decision on Thursday, the 9th, coming up this week, attention is expected to focus on the Canadian dollar and the euro. We will first monitor currency strength and weakness while carefully assessing price movements at the start of the week.
Author: Keisuke Sakurai
