All eyes on the Chicago Fed National Activity Index
25.10.2021
- Chicago Fed National Activity Index
- Dallas Fed Manufacturing Activity Index
Last weekend, the three major U.S. stock indices saw mixed performance, with stock prices remaining flat, interest rates falling, and crude oil prices rising.WTI crude oil reached $84.65, setting a new high for the month. It continues to trade at elevated levels. The VIX (fear index) rose by about 3% to around 15.4. Saudi Arabia’s energy minister maintained a cautious stance regarding demand growth due to the impact of the pandemic and made remarks suggesting reluctance toward a significant increase in crude oil production.
In the foreign exchange market, the yen-buying trend that began last weekend has paused during today’s Asian trading session, and the EUR/JPY pair has rebounded from 132.00 to 132.60. From a technical perspective, the EUR/JPY pair continues to form lower highs and lower lows on the 4-hour chart, so we’ll want to wait and see whether this signals a clear reversal.
Today’s economic indicators include Turkey’s Economic Sentiment Index and Capacity Utilization Rate at 4:00 PM, followed by Germany’s Ifo Business Climate Index at 5:00 PM. As we move into U.S. trading hours, the Chicago Fed National Activity Index is scheduled for 9:30 PM, remarks by MPC member Tenreyro are set for 10:00 PM, and the Dallas Fed Manufacturing Activity Index is due at 11:30 PM.This week, policy rate announcements are scheduled from the Bank of Japan, the Bank of Canada (BOC), and the European Central Bank (ECB). We will be closely monitoring how various currencies perform against one another.
Author: Keisuke Sakurai
