Should we watch for a pullback in the euro-dollar exchange rate?
18.10.2021
- Canada: Housing Starts
- U.S. Capacity Utilization Rate
Last weekend, the three major U.S. stock indices all extended their gains, with the S&P 500 closing at 4,471 points, up 0.75% from the previous day. The yield on the 10-year U.S. Treasury note has risen again to 1.60%.WTI crude oil prices have also surged and are currently trading in the $82.8 range. Gold has faced resistance as the U.S. dollar strengthens and has fallen to the $1,767 range.
In the foreign exchange market, the U.S. dollar continues to strengthen. The EUR/USD pair has paused its rebound from last week and is currently testing support around 1.158. From a technical perspective, the EUR/USD is trading above the 200-period simple moving average (SMA), and we need to carefully assess whether the support level around 1.157 will hold.
Today’s schedule includes remarks by U.S. Federal Reserve Vice Chair Quarles at 6:30 p.m., Turkey’s Housing Price Index at 8:30 p.m., Canada’s Housing Starts at 9:15 p.m., Canada’s International Securities Turnover at 9:30 p.m., U.S. Industrial Production and Capacity Utilization at 10:15 p.m., the U.S. NAHB Housing Market Index at 11:00 p.m., and remarks by BOE Deputy Governor Kanrif at 11:30 p.m.remarks by Bank of England Deputy Governor Canlif, and at 12:40 a.m., remarks by Bank of Canada Deputy Governor Lane. We will carefully monitor price movements at the start of the week while comparing currency strength.
Author: Keisuke Sakurai
