Will the pause in the yen's decline continue?
22.10.2021
- U.S. Daily: Remarks by the President of the Federal Reserve Bank of San Francisco
- UK Retail Sales
Yesterday, in the U.S. market, two of the three major stock indices rose, resulting in a market environment characterized by higher stock prices, higher interest rates, and lower crude oil prices. The number of new U.S. unemployment insurance claims released yesterday came in at 2.48 million, compared to the market forecast of 2.55 million, marking the third consecutive week of decline in claims.WTI crude oil fell to $82.20. Crude oil futures prices declined after the U.S. National Oceanic and Atmospheric Administration (NOAA) forecast a mild winter for the United States.
The foreign exchange market is seeing a broad-based decline in the euro, with the EUR/AUD pair hitting a new low for the month. It is currently trading around 1.555. The EUR/AUD pair has already broken below the trendline support at 1.565, and if the decline continues, the next target for a downward move would likely be the recent low of 1.529.
Today’s economic indicators include UK retail sales at 3:00 PM, French manufacturing and services PMIs at 4:15 PM, German manufacturing and services PMIs at 4:30 PM, Eurozone manufacturing and services PMIs at 5:00 PM, UK manufacturing and services PMIs at 5:30 PM, and Canadian retail sales at 9:30 PM,U.S. Manufacturing/Services PMI at 10:45 PM, remarks by Fed Vice Chair Quarles and remarks by San Francisco Fed President Daly at 11:00 PM, and remarks by Fed Chair Powell at midnight. With the yen’s decline having paused, we want to carefully assess how the foreign exchange market will unfold over the weekend.
Author: Keisuke Sakurai
