Will the pound's rebound continue?
19.10.2021
- Remarks by Bank of England Governor Bailey
- Earnings reports from major U.S. companies such as Bank of New York Mellon, P&G, and J&J
Yesterday, two of the three major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, stable interest rates, and a stronger U.S. dollar. WTI crude oil fell from its intraday high of $83.10 and has since settled around $81.70. Concerned about soaring oil prices, the Japanese government agreed yesterday to urge OPEC+ to increase production at its meeting scheduled for early next month.
In the foreign exchange market, the GBP/USD pair continues to rebound. It is currently trading around 1.376 and has just reached the 120-day moving average on the daily chart. If the upward trend continues, the recent high of around 1.382 will likely be the short-term target. Additionally, with several major U.S. companies set to report earnings today, we should closely monitor the direction of the U.S. dollar.
Today’s schedule includes remarks by MPC member Mann (UK) at 7:00 PM, remarks by BOE Governor Bailey (UK) at 9:05 PM, U.S. housing starts and building permits at 9:30 PM, remarks by MPC member Pill (UK) at 10:00 PM, and remarks by U.S. Federal Reserve Governor Daly at 12:00 AM:San Francisco Fed President, at 1:15 AM: U.S. Richmond Fed President Barkin, at 2:15 AM: U.S. Federal Reserve Governor Bowman, at 3:50 AM: U.S. Atlanta Fed President Bostic, and at 4:00 AM: U.S. Federal Reserve Governor Waller.While keeping an eye on the overlapping remarks from key officials during U.S. trading hours, we should carefully assess the relative strength of currencies against the U.S. dollar.
Author: Keisuke Sakurai
