Should we be wary of a decline in cross-yen pairs?
27.10.2021
- U.S. Weekly Crude Oil Inventories
- Rice and Durable Goods Orders
Yesterday, the three major U.S. stock indices all extended their gains, resulting in a market environment characterized by rising stock prices, falling interest rates, and lower crude oil prices.WTI crude oil is trading in the $84 range and remains at elevated levels. BlackRock CEO Larry Fink stated at an investment conference held yesterday in Saudi Arabia, “Inflation will persist, and there is a high probability that prices will rise to $100 per barrel. The number of people who believe inflation is transitory should decrease.”
In the foreign exchange market, cross-yen pairs have been trending slightly lower during today’s Asian session, with GBP/JPY falling from yesterday’s high of 157.69 to 156.85. From a technical perspective, GBP/JPY appears to be forming a triple top on the 4-hour chart, so we need to carefully assess whether this will lead to a significant decline. If the pair does fall, there is no support until 155.92, so it could extend its decline.
Today, at 3:45 PM, France will release its Producer Price Index and Consumer Confidence Index; at 4:00 PM, Turkey will release its trade balance;at 8:00 PM, the U.S. MBA Mortgage Applications Index; at 9:30 PM, U.S. Durable Goods Orders and Wholesale Inventories; at 11:00 PM, the Bank of Canada’s policy rate decision and statement; at 11:30 PM, U.S. weekly crude oil inventories; at 12:00 AM, a press conference by Bank of Canada Governor Macklem; and at 2:00 AM, a U.S. 5-year Treasury auction.With so many economic indicators being released, we should keep a close eye on currency strength while paying attention to price movements during U.S. trading hours.
Author: Keisuke Sakurai
