Will the pound's rise continue during U.S. trading hours?
06.10.2021
- UK Construction PMI
- U.S. ADP National Employment Report
Yesterday, in the U.S. market, two of the three major stock indices fell, resulting in a market environment characterized by falling stock prices, rising interest rates, and higher crude oil prices.The U.S. ISM Non-Manufacturing Index for September, released yesterday, rose slightly to 61.9, compared to the market forecast of 59.9; however, the U.S. trade balance for August, also released yesterday, posted a deficit for the first time in two months.
In the foreign exchange market, the pound—which had been falling sharply—has rebounded, and the GBP/JPY pair has risen for the third consecutive day to 151.85.Looking at the GBP/JPY pair on a daily chart, we see a rebound off the 200-day moving average. Although the highs are trending lower, the lows are not; therefore, the key will be whether the pair can firmly break above the recent high of 152.55 with a solid candlestick body.
Today’s schedule includes German manufacturing orders at 3:00 p.m., the UK construction PMI at 5:30 p.m., Eurozone retail sales at 6:00 p.m., the U.S. MBA Mortgage Applications Index at 8:00 p.m.,at 9:15 PM, the U.S. ADP National Employment Report; at 10:00 PM, remarks by Bostic, President of the Atlanta Fed; at 11:30 PM, U.S. weekly crude oil inventories; and at 12:30 AM, remarks by Bostic, President of the Atlanta Fed.We will carefully assess whether European currencies can demonstrate their resilience against the U.S. dollar, which has been gaining strength.
Author: Keisuke Sakurai
