Should we keep an eye on the balance between the U.S. dollar and European currencies?
26.10.2021
- U.S. New Home Sales
- Richmond Fed Manufacturing Index
Yesterday, all three major U.S. stock indices rose, with the Nasdaq posting the largest gain, closing at 15,226 points, up 0.90% from the previous day. The Semiconductor Index (SOX) also rose, trading around 3,392. The rise in the U.S. 10-year Treasury yield has paused, and it is currently trading in the 1.64% range.
In the foreign exchange market, the euro faced upward pressure after Germany’s October Ifo Business Climate Index, released yesterday, came in at 97.7—below the forecast of 98.0—marking a fourth consecutive monthly decline. As a result, the euro/pound pair fell from 0.846 to 0.842. The euro is also weakening against Oceania currencies, with the euro/Australian dollar pair dropping to 1.545.
Today, the CBI Retail Trade Survey is scheduled for 7:00 PM European time, followed by the S&P/Case-Shiller Home Price Index at 10:00 PM U.S. time, the U.S. Consumer Confidence Index, U.S. New Home Sales, and the Richmond Fed Manufacturing Index at 11:00 PM U.S. time, and a U.S. 2-year Treasury auction at 2:00 AM U.S. time.In addition, earnings reports from U.S. tech giants such as Alphabet, Twitter, and Microsoft are concentrated today. We will keep a close eye on currency movements while monitoring U.S. stock price fluctuations.
Author: Keisuke Sakurai
