Should we keep an eye on European currencies ahead of the policy rate announcement?
08.09.2021
- U.S. JOLTS Survey
- France: Trade Balance
Yesterday, the Dow Jones Industrial Average and the S&P 500 fell in U.S. markets, creating a risk-off sentiment characterized by falling stock prices, rising interest rates, and lower oil prices. WTI crude oil has pulled back from last week’s $70 range and is currently trading in the $68.9 range. Additionally, gold, which had been trading sideways around the key $1,800 level, has fallen and is currently trading in the $1,797 range.
Ahead of tomorrow’s policy rate announcement, the euro is trading lower in the foreign exchange market, with the EUR/USD pair falling from 1.188 to 1.183. The euro was also weak against the pound, another European currency, yesterday, completely erasing its gains during European trading hours and falling from 0.860 to 0.858.
Today’s schedule includes the French trade balance at 15:45 (Asia time), remarks by RBA Deputy Governor Devel at 17:10 (Europe time), the Bank of Canada’s policy rate announcement and the U.S. JOLTS survey at 20:00 (Europe time), remarks by BOE Governor Bailey at 24:00 (U.S. time), the U.S. 10-year Treasury auction at 26:00,at 2:10 a.m. (US time), remarks by John Williams, President of the New York Fed; and at 3:00 a.m. (US time), the US Federal Reserve Beige Book. Ahead of tomorrow’s ECB policy rate announcement, we will carefully monitor how European currencies react.
Author: Keisuke Sakurai
