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, in the U.S. market, the three major stock indices all extended their gains, resulting in a trading session characterized by rising stock prices, flat interest rates, and flat crude oil prices. The Russell 2000, which consists of small- and mid-cap stocks, also rose about 0.23% from the previous day, closing at 2,442.In his remarks yesterday, Federal Reserve Chair Powell made no mention of 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, and the EUR/JPY pair fell slightly from 131.42 to 130.76.Since the EUR/JPY pair is trading above the 200-period 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 European time, remarks by ECB President Lagarde at 22:00, the U.S. Producer Price Index at 22:30 U.S. time, remarks by Fed Chair Powell at 23:00, and remarks by U.S. Federal Reserve Bank of St. Louis President Braad:St. Louis Fed President, at 27:00 a U.S. 10-year Treasury auction, at 27:30 a speech by Kashkari, President of the Minneapolis Fed, and at 7:45 the following day a speech by Macleem, Governor of the Bank of Canada.I will be watching closely to see if the direction of the currency becomes clear during today’s U.S. trading hours.
Author: Keisuke Sakurai
