Will the Pound's Rebound Continue?
19.10.2021
- Remarks by Bank of England Governor Bailey
- Major U.S. Companies, Including Bank of New York Mellon, P&G, and J&J, Report Earnings
Yesterday, in the U.S. market, two of the three major stock indices rose, resulting in a market environment characterized by higher stock prices, flat 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 crude 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 a number of major U.S. companies set to report earnings today, we should carefully monitor the direction of the U.S. dollar.
Today’s schedule includes remarks by a member of the UK’s MPC at 19:00, remarks by UK BOE Governor Bailey at 21:05, U.S. housing starts and building permits at 21:30, and remarks by a member of the UK’sPill, a member of the MPC, at 10:00 p.m., a speech by U.S. San Francisco Fed President Daly at 12:00 a.m., a speech by U.S. Richmond Fed President Barkin at 1:15 a.m.,President of the Richmond Fed, at 26:15 a statement by U.S. Federal Reserve Governor Bowman, at 27:50 a statement by U.S. Atlanta Fed President Bostic, and at 28:00 a statement by U.S. Federal Reserve Governor Waller.While keeping an eye on these overlapping remarks by key officials during U.S. trading hours, we should carefully assess the relative strength of currencies against the U.S. dollar.
Author: Keisuke Sakurai
