Keep an eye on the direction of the euro, which is showing signs of weakness
16.11.2021
- Remarks by ECB President Lagarde
- George (U.S.): Remarks by the President of the Federal Reserve Bank of Kansas City
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 oil prices. The U.S. November NY Fed Manufacturing Index, released yesterday, came in at 30.9—exceeding the market forecast of 22.0 and marking the 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 had become the weakest currency as of yesterday. The euro is also weakening against the pound, another European currency, with the EUR/GBP pair falling from 0.853 to 0.847. We need to carefully assess whether the EUR/GBP pair will extend its decline to the next immediate support level at 0.841.
Today’s schedule includes the UK unemployment rate at 4:00 PM, the French Consumer Price Index at 4:45 PM, the Turkish Housing Price Index at 8:30 PM, Canadian housing starts at 10:15 PM, U.S. retail sales and the U.S. Import Price Index at 10:30 PM, U.S. industrial production and the U.S. capacity utilization rate at 11:15 PM, and U.S. business inventories at 12:00 AM,US NAHB Housing Market Index; at 01:10, remarks by ECB President Lagarde; at 02:00, remarks by Bostic (President of the Atlanta Fed), Barkin (President of the Richmond Fed), George (President of the Kansas City Fed), and Daly (President of the San Francisco Fed) are scheduled.We will be closely watching to see which direction the currently weak euro takes today.
Author: Keisuke Sakurai
