Should We Keep an Eye on the Direction of the Weakening Euro?
16.11.2021
- Remarks by ECB President Lagarde
- George (U.S.): Remarks by the President of the Kansas City Federal Reserve Bank
Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, rising interest rates, and higher crude oil prices.The U.S. New York Fed Manufacturing Index for November, released yesterday, came in at 30.9—exceeding the market forecast of 22.0 and marking its highest level since 2001—but failed to provide reassurance for stock prices. The Russell 2000 also fell about 0.45% from the previous day, closing at 2,400.
In the foreign exchange market, the euro is facing significant resistance on the upside, and as of yesterday, it had become the weakest currency. The euro is also showing weakness against the pound, another European currency, with the euro/pound pair falling from 0.853 to 0.847. We need to carefully assess whether the euro/pound pair will continue to decline toward its next immediate low of 0.841.
Today’s schedule includes the UK unemployment rate at 16:00, the French Consumer Price Index at 16:45, the Turkish Housing Price Index at 20:30, Canadian housing starts at 22:15, U.S. retail sales at 22:30,U.S. Import Price Index, at 23:15: U.S. Industrial Production and U.S. Capacity Utilization, at 24:00: U.S. Business Inventories and U.S. NAHB Housing Market Index, at 25:10: Remarks by ECB President Lagarde, at 26:00: U.S. Bostic:remarks by Atlanta Fed President Bostic, remarks by Richmond Fed President Barkin, remarks by Kansas City Fed President George, and remarks by San Francisco Fed President Daly are scheduled. We will be closely watching to see which direction the currently weak euro takes today.
Author: Keisuke Sakurai
