Will the falling yen crosses extend their decline?
09.11.2021
- U.S. 10-Year Treasury Auction
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
Yesterday, the three major U.S. stock indices all extended their gains, resulting in a market environment characterized by rising stock prices, flat interest rates, and flat crude oil prices. The Russell 2000, which comprises small- and mid-cap stocks, also rose by about 0.23% from the previous day, closing at 2,442. In his remarks yesterday, Federal Reserve Chair Powell did not mention the timing or specific details of interest rate hikes following tapering, which appeared to allay market concerns.
The foreign exchange market is showing a trend of selling the dollar and buying the yen, with the USD/JPY pair falling from 113.64 to 112.77. Cross-yen pairs are generally declining, with the EUR/JPY falling slightly from 131.42 to 130.76. Since the EUR/JPY is trading above the 200-period simple moving average (SMA) on the 4-hour chart, we need to closely monitor whether a rebound will occur.
Today’s schedule includes the German ZEW Economic Sentiment Survey at 19:00 CET, remarks by ECB President Lagarde at 22:00 CET, the U.S. Producer Price Index at 22:30 ET, remarks by Fed Chair Powell at 23:00 ET, and remarks by U.S. Federal Reserve Bank of St. Louis President Bullard:St. Louis Fed President, at 03:00 AM; the U.S. 10-year Treasury auction at 03:30 AM; remarks by U.S. Minneapolis Fed President Kashkari at 03:30 AM; and remarks by Canadian Bank of Canada Governor McClem at 07:45 AM the following day. We will be closely monitoring whether currency trends become clearer during today’s U.S. trading hours.
Author: Keisuke Sakurai
