Will the U.S. dollar’s upward momentum continue?
12.11.2021
- University of Michigan Consumer Sentiment Index (Preliminary Reading)
- Turkey: Industrial Production
Yesterday, in the U.S. markets, two of the three major stock indices rose, resulting in a market environment characterized by higher stock prices, higher interest rates, and flat crude oil prices.WTI crude oil is trading sideways around $80.9, while gold is hovering around $1,860 without falling significantly from the sharp surge the day before yesterday. The yield on the 10-year U.S. Treasury note is trading in the 1.56% range.
In the foreign exchange market, the U.S. dollar is showing strength, and the GBP/USD pair is trending lower. Although GBP/USD has fallen slightly from 1.343 to 1.335, it is approaching the 200-day EMA on the weekly chart. Since a break below this level would require significant momentum, it is important to carefully assess the direction of the U.S. dollar.
Today’s schedule includes Turkey’s industrial production at 4:00 p.m., Switzerland’s producer import index at 4:30 p.m., and the Eurozone’sIndustrial Production, at 11:00 p.m. UK remarks by MPC member Haskell, at midnight U.S. University of Michigan Consumer Sentiment Index (preliminary), U.S. JOLTS Job Openings and Labor Turnover Survey, and at 2:10 a.m. remarks by U.S. New York Fed President Williams.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
