Will the yen's one-sided decline come to a halt?

Will the yen's one-sided decline come to a halt?

21.10.2021

Yesterday, in the U.S. market, two of the three major stock indices rose, resulting in a market environment characterized by higher stock prices, lower interest rates, and higher crude oil prices.WTI crude oil rose to $83.30, hitting a seven-year high. Gold rebounded and is trading around $1,785. The yield on the 10-year U.S. Treasury note, which had briefly reached 1.66%, is currently at 1.65%.

In the foreign exchange market, the trend of yen selling has paused, and cross-yen pairs are falling. GBP/JPY fell from a session high of 158.20 to 157.40. AUD/JPY has also dropped from 86.2 to 85.5.Given that this month’s daily candles have been mostly bullish, the decline in cross-yen pairs is a logical development. Meanwhile, among European currencies, the euro/pound pair has continued to slide this month.

Today, Japan’s machine tool orders will be released at 15:00 Asia time; Turkey’s consumer confidence index at 16:00 Europe time; and at 19:00 UK time,CBI Business Survey, at 20:00 the Turkish TCMB policy rate and statement, at 21:30 U.S. time U.S. initial jobless claims and the U.S. Philadelphia Fed Business Outlook Index,at 22:00, remarks by Fed Governor Waller; at 23:00, the U.S. Leading Economic Index and U.S. Existing Home Sales; at 23:30, U.S. weekly natural gas inventories; and at 28:00, remarks by RBA Governor Lowe.As we head into the latter half of the week, we will carefully monitor how the U.S. dollar, which has been losing momentum, performs against other currencies.