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 (U.S.)
Yesterday, the three major U.S. stock indices all rose, with the Nasdaq—which posted the largest gain—closing at 15,226 points, up 0.90% from the previous day.The Semiconductor Index (SOX) also rose and is currently 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 is facing upward pressure after Germany’s October Ifo Business Climate Index, released yesterday, came in at 97.7—below the forecast of 98.0—marking its 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 falling to 1.545.
Today, the CBI Retail Trade Survey is scheduled for 19:00 European time, followed by the S&P/Case-Shiller Home Price Index at 22:00 U.S. time, the U.S. Consumer Confidence Index, U.S. New Home Sales, and the Richmond Fed Manufacturing Index at 23:00, andand at 26:00, the U.S. 2-year Treasury auction. Additionally, today features a flurry of earnings reports from U.S. tech companies such as Alphabet, Twitter, and Microsoft. We will carefully monitor currency movements while keeping a close eye on U.S. stock price fluctuations.
