Will the risk-off sentiment persist into the start of the week?
06.12.2021
- Sir Paul Broadbent, Deputy Governor of the Bank of England
- Exclusive: New Orders in the Manufacturing Sector
Last weekend, the three major U.S. stock indices all fell, and the market closed amid a risk-off sentiment characterized by falling stock prices, interest rates, and oil prices. The yield on the 10-year U.S. Treasury note fell below 1.4% to 1.35%.WTI crude oil briefly fell to $65.60 and is currently trading around $66.20. Gold rebounded slightly and is trading around $1,784.
The foreign exchange market opened without any significant gaps. Oceania currencies remain weak, and the AUD/USD pair has posted four consecutive daily losses. However, since the pair is currently trading near 0.699—the recent low on the weekly chart—we need to carefully assess whether the decline will continue or if a rebound is likely.
Today’s economic calendar includes German manufacturing new orders at 4:00 PM, the UK construction PMI at 6:30 PM, and remarks by BOE Deputy Governor Broadbent at 8:30 PM. No major economic releases or speeches by key officials are scheduled during U.S. trading hours.This week, the RBA policy rate is scheduled for Tuesday, the 7th, the BOC policy rate for Wednesday, the 8th, and the U.S. Consumer Price Index for Friday, the 10th. Amid an overall risk-off sentiment, we will closely monitor how currency strength and weakness evolve.
Author: Keisuke Sakurai
