Will the U.S. dollar continue to hit new highs over the weekend?
15.10.2021
- France: Consumer Price Index
- Number of New and Existing Home Sales
Yesterday, the three major U.S. stock indices all rebounded, fueling a risk-on sentiment characterized by rising stock prices, falling interest rates, and a stronger U.S. dollar. Energy prices are also surging; while OPEC noted that it will take time for demand to recover from the impact of the novel coronavirus, WTI crude oil rose to $81.90.
In the foreign exchange market, the U.S. dollar continues to rise. Combined with the yen’s weakness, the USD/JPY pair broke through the 114-yen level during Asian trading hours today, climbing as high as 114.15. It has already surpassed its weekly high, and the key question will be whether it can break above the October 2018 high of 114.50.
Today, at 3:45 PM, France’s Consumer Price Index; at 6:00 PM, the Eurozone’s trade balance;at 9:30 PM, U.S. Retail Sales, Canadian Wholesale Sales, the U.S. NY Fed Manufacturing Index, and the U.S. Import Price Index; at 10:00 PM, Canadian Existing Home Sales; at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index (Preliminary) and U.S. Business Inventories; and at 12:45 AM, remarks by U.S. Federal Reserve Bank of St. Louis President Bullard.We will be closely monitoring how other currencies position themselves against the notably strong U.S. dollar.
Author: Keisuke Sakurai
