Will the pound's rise continue during U.S. trading hours?
06.10.2021
- UK Construction PMI
- U.S. ADP National Employment Report
Yesterday, two of the three major U.S. stock indices fell, resulting in a market environment characterized by falling stock prices, rising interest rates, and higher 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 recovered, and the GBP/JPY pair has risen for the third consecutive day to 151.85. Looking at the GBP/JPY on a daily chart, we see a rebound at the 200-day moving average. While the highs are declining, the lows are holding steady, so the key will be whether the pair can firmly break above the recent high of 152.55 with a solid body.
Today’s schedule includes German manufacturing orders at 3:00 PM, the UK Construction PMI at 5:30 PM, Eurozone retail sales at 6:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, the US ADP National Employment Report at 9:15 PM, remarks by Bostic, President of the Atlanta Fed, at 10:00 PM, US weekly crude oil inventories at 11:30 PM,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 strengthening U.S. dollar.
Author: Keisuke Sakurai
