Keep an eye on the direction of the pound, which is currently at its weakest
29.09.2021
- UK Consumer Credit Balances
- U.S. MBA Mortgage Applications Index
Yesterday, the three major U.S. stock indices all fell, leading to a market environment characterized by falling stock prices, rising interest rates, and higher oil prices. U.S. Treasury Secretary Yellen commented yesterday on concerns about a potential default, stating, “If Congress does not act by October 18, the Treasury will run out of funds.” This sparked fears of a default, causing stock prices to plummet.
As of yesterday, the pound was the weakest currency in the foreign exchange market, with GBP/JPY falling by approximately 200 pips from 152.56 to 150.59. GBP/USD also declined by about 200 pips, dropping from 1.371 to 1.352.From a technical perspective, GBP/USD has clearly broken below both its high and low on the daily chart, so we will be watching closely to see if it falls to 1.337, which is near the weekly 200-day moving average.
Today’s schedule includes: Germany’s Import Price Index at 3:00 PM, Turkey’s Economic Confidence Index at 4:00 PM, UK Mortgage Approvals and UK Consumer Credit at 5:30 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, Canada’s Industrial Product Prices at 9:30 PM, and U.S. Fed’s Harker:Philadelphia Fed President’s remarks, at 11:00 PM US Pending Home Sales, at 11:30 PM US Weekly Crude Oil Inventories, at 12:45 AM UK BOE Governor Bailey’s remarks, EU ECB President Lagarde’s remarks, Japan BOJ Governor Kuroda’s remarks, US Fed Chair Powell’s remarks, at 2:00 AM US Daily:Remarks by the President of the Federal Reserve Bank of San Francisco, and at 03:00, remarks by Bostic, President of the Federal Reserve Bank of Atlanta, are scheduled. We will be watching closely to see if the weakening pound will rebound in the final week of the month.
Author: Keisuke Sakurai
