All Eyes on the Euro as It Faces Pressure from the Strong U.S. Dollar
18.11.2021
- Kansas City Federal Reserve Bank Manufacturing Activity Index
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
Yesterday, the three major stock indices in the U.S. market all fell, creating a risk-off sentiment characterized by falling stock prices, lower interest rates, and lower crude oil prices.U.S. housing starts for October, released yesterday, came in at 1.52 million units—below the market forecast of 1.579 million—due to material shortages, while housing permits exceeded expectations. Gold rebounded alongside the decline in the U.S. dollar, rising to the $1,866 range.
In the foreign exchange market, the euro/dollar pair, which had been on a downward trend, paused its decline, briefly touching 1.126 before rebounding; it is currently trading around 1.133.However, the EUR/USD pair has hit a new low for the year, and from a technical perspective, we should be fully prepared for the possibility that the decline could continue down to the next daily support level around 1.115.
Today’s schedule includes Switzerland’s trade balance at 16:00, the TCMB’s policy rate and statement at 20:00, and at 22:00, remarks by Bostic:remarks by the President of the Atlanta Fed; at 10:30 p.m., Canada’s international securities turnover, U.S. initial jobless claims, and the U.S. Philadelphia Fed Business Outlook Index; at 11:30 p.m., U.S. remarks by Williams:Speech by the President of the New York Fed; at 24:00, U.S. Leading Economic Index; at 24:30, U.S. Weekly Natural Gas Inventories; and at 25:00, U.S. Kansas City Fed Manufacturing Activity Index. We will pay close attention to currency strength and weakness while keeping a close eye on today’s economic data releases.
Author: Keisuke Sakurai
