Should we pay attention to U.S. Treasury Secretary Yellen's congressional testimony?
01.12.2021
- MIS 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 declining oil prices. WTI crude oil fell well below $70 and is currently trading around $67.50 per barrel. Gold also faced resistance on the upside, falling sharply on the last day of November to settle around $1,778.
In the foreign exchange market, the GBP/JPY pair fell 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 those losses and is currently trading around 150.90. From a technical perspective, since the pair has not yet reached the daily low of 148.98, we need to carefully assess whether the upward trend will continue.
Today, at 4:00 PM: Turkey Manufacturing PMI, UK Nationwide House Prices, and Germany Retail Sales; at 4:30 PM: Switzerland Consumer Price Index; at 9:00 PM: US MBA Mortgage Applications; at 10:15 PM: US ADP National Employment Report; at 10:30 PM: Canada 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 while paying attention to the headlines.
Author: Keisuke Sakurai
