Should We Pay Attention to U.S. Treasury Secretary Yellen’s Congressional Testimony?
01.12.2021
- U.S. ISM Manufacturing Index
- Testimony by U.S. Treasury Secretary Yellen Before Congress
Yesterday, the three major U.S. stock indices all fell, leading to a risk-off market characterized by falling stock prices, lower interest rates, and lower crude oil prices. WTI crude oil has fallen well below $70 and is trading around $67.50 per barrel.Gold also faced resistance on the upside, falling sharply on the final day of November to trade around $1,778.
In the foreign exchange market, the GBP/JPY pair fell by nearly 200 pips yesterday, briefly dipping below the key level of 150.00 to hit 149.71. However, during today’s Asian trading session, it recovered more than half of its losses and is currently trading around 150.90.From a technical perspective, since GBP/JPY has not yet reached the daily low of 148.98, we need to carefully assess whether the upward trend will continue.
Today, at 16:00, Turkey’s Manufacturing PMI, the UK’s Nationwide House Price Index, and Germany’s Retail Sales;at 4:30 p.m., the Swiss Consumer Price Index; at 9:00 p.m., the U.S. MBA Mortgage Applications Index; at 10:15 p.m., the U.S. ADP National Employment Report; at 10:30 p.m., Canadian Housing Starts;at 11:00 PM, remarks by Bank of England Governor Bailey; at 11:45 PM, the U.S. Manufacturing PMI; at 12:00 AM, the U.S. ISM Manufacturing Index; and at 12:00 AM, congressional testimony by Federal Reserve Chair Powell and Treasury Secretary Yellen.I plan to keep a close eye on currency strength and weakness while paying attention to the headlines.
Author: Keisuke Sakurai
