Will the U.S. dollar’s strength continue?
12.11.2021
- University of Michigan Consumer Sentiment Index (Preliminary)
- Turkey: Industrial Production
Yesterday, two of the three major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, higher interest rates, and flat crude oil prices. WTI crude oil remained flat around $80.90, while gold held steady around $1,860 without falling significantly from the sharp surge seen the day before. The yield on the 10-year U.S. Treasury note is hovering in the 1.56% range.
In the foreign exchange market, the U.S. dollar is showing strength, causing the GBP/USD pair to decline. Although GBP/USD has fallen slightly from 1.343 to 1.335, it is currently hovering just above the 200-day EMA on the weekly chart. Since a break below this level would require significant momentum, it is important to closely monitor the direction of the U.S. dollar.
Today, at 4:00 PM, Turkey’s industrial production; at 4:30 PM, Switzerland’s producer import price index; at 7:00 PM, EurozoneIndustrial Production at 7:00 PM, remarks by UK MPC member Haskell at 11:00 PM, the University of Michigan Consumer Sentiment Index (Preliminary) and the JOLTS report at 12:00 AM, and remarks by NY Fed President Williams at 2:10 AM. Looking ahead to the second half of the month starting next week, I intend to carefully monitor how the foreign exchange market moves today.
Author: Keisuke Sakurai
