Will the stalemate between Western currencies come to an end?
16.09.2021
- Retail and Wholesale Sales
- Philadelphia Fed Business Outlook Index
Yesterday, the three major U.S. stock indices all rose, creating a risk-on sentiment characterized by higher stock prices, higher interest rates, and higher oil prices. Energy-related stocks saw particularly notable gains, rising in tandem with the increase in crude oil prices. Bank stocks also showed an upward trend. Meanwhile, WTI crude oil has recovered to $72.50. Gold fell again and is trading in the $1,791 range.
In the foreign exchange market, the euro and the U.S. dollar are locked in a tight battle, with the EUR/USD pair trading within a narrow range of 1.179 to 1.183, fluctuating up and down without a clear direction. Although the hourly chart shows lower highs, the lows are also rising slightly, so this is a phase where we need to watch for the possibility of a technical pennant formation.
Today’s economic indicators include the Eurozone trade balance at 6:00 PM, Turkey’s housing price index at 8:30 PM, Canada’s housing starts at 9:15 PM, Canada’s wholesale sales at 9:30 PM, U.S. initial jobless claims, U.S. retail sales, and the U.S. Philadelphia Fed Business Outlook Index at 9:30 PM, and U.S. business inventories at 11:00 PM.23:30: US Weekly Natural Gas Inventories, and 29:00: US Foreign Investment in US Securities. We will closely monitor price movements while paying close attention to the relative strength of the US dollar and European currencies.
