Market participants may be on the lookout for price movements when U.S. economic indicators are released
08.10.2021
- Germany's Trade Balance
- U.S. Employment Report
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. The rise in WTI crude oil was particularly notable, with the price currently standing at $79.30 per barrel. Brent crude is also continuing to rise. Gold, however, is moving in a range around the $1,759 level, bucking the trend of the strengthening U.S. dollar.
In the foreign exchange market, the EUR/USD pair is trending lower as the U.S. dollar strengthens. The pair has been falling while making lower highs along the 4-hour 20-MA and is currently continuing its decline around the 1.155 level. Since the price has already broken below the weekly 200-SMA, we need to carefully assess whether the decline will accelerate from here.
Today’s schedule includes Germany’s trade balance at 3:00 PM, remarks by ECB President Lagarde and U.S. Treasury Secretary Yellen at 9:05 PM, Canada’s unemployment rate and the U.S. employment report (including the unemployment rate, average hourly earnings, and manufacturing payrolls) at 9:30 PM, and the U.S. wholesale inventories (final reading) at 11:00 PM.Given that today’s U.S. employment report could provide concrete details on the pace of tapering, we should pay close attention to the results of these indicators.
Author: Keisuke Sakurai
