Should we be wary of a decline in the pound against the U.S. dollar?
25.11.2021
- Remarks by ECB President Lagarde
- Remarks by Haskell, a member of the Bank of England’s Monetary Policy Committee
Yesterday, two of the three major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, stable interest rates, and lower oil prices. WTI crude oil fell slightly to $78.40, while gold declined in tandem with the strengthening U.S. dollar, trading around $1,792. The VIX (fear index) fell by about 4% and is currently hovering around 18.5.
In the foreign exchange market, the pound weakened against the U.S. dollar, with the GBP/USD pair falling from 1.337 to 1.331. Technically, the GBP/USD pair is trending downward around the 20-period moving average on the 4-hour chart and has already hit a new low for the year. Whether it will continue to decline will depend on the strength of the U.S. dollar.
Today’s economic indicators include Germany’s Q3 GDP (revised) and GfK Consumer Confidence Survey at 4:00 PM, South Africa’s Producer Price Index at 6:30 PM, the release of the minutes from the ECB’s October Governing Council meeting at 9:30 PM, remarks by ECB President Lagarde at 10:30 PM, and a speech by UKRemarks by MPC Member Haskell, at 2:30 AM UK time, Remarks by BOE Governor Bailey, and at 6:00 AM the following day, the NZ ANZ Consumer Confidence Index. We will watch the situation closely to see if the strength of the firm U.S. dollar holds.
Author: Keisuke Sakurai
