Will the U.S. dollar continue to hit new highs over the weekend?
15.10.2021
- France: Consumer Price Index
- Number of New and Used 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 COVID-19 pandemic, WTI crude oil rose to 81.9.
In the foreign exchange market, the U.S. dollar continues to rise. Combined with the yen’s weakness, the USD/JPY pair broke into the 114-yen range during today’s Asian trading session, climbing as high as 114.15. It has already set a new weekly high, and the key question will be whether it can surpass the October 2018 high of 114.50.
Today, the French Consumer Price Index is scheduled for 15:45, the Eurozone Trade Balance for 18:00, U.S. Retail Sales, Canadian Wholesale Sales, the U.S. New York Fed Manufacturing Index, and the U.S. Import Price Index for 21:30, Canadian Existing Home Sales for 22:00,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. St. Louis Fed President Bullard are scheduled. We will be closely monitoring how other currencies position themselves against the notably strong U.S. dollar.
Author: Keisuke Sakurai
