All eyes are on the euro as it faces pressure from the strength of the U.S. dollar
18.11.2021
- Kansas City Fed Manufacturing Activity Index
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
Yesterday, the three major U.S. stock indices all fell, creating a risk-off sentiment characterized by falling stock prices, lower interest rates, and cheaper crude oil. 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 level.
In the foreign exchange market, the euro/dollar pair, which had been on a downward trend, paused its decline, briefly touching 1.126 before recovering; it is currently trading around 1.133. However, the euro/dollar pair has hit a new low for the year, and from a technical perspective, we should remain 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 4:00 PM, the TCMB policy rate and statement from Turkey at 8:00 PM, remarks by Bostic, President of the Atlanta Fed, at 10:00 PM, Canada’s international securities turnover, U.S. initial jobless claims, and the U.S. Philadelphia Fed Business Outlook Index at 10:30 PM, and remarks by Williams,NY Fed President, 12:00 AM: US Leading Economic Index, 12:30 AM: US Weekly Natural Gas Inventories, 1:00 AM: US Kansas City Fed Manufacturing Activity Index. We will pay close attention to today’s economic releases and monitor currency strength.
Author: Keisuke Sakurai
