Should We Keep an Eye on a Rebound in the Pound-Yen Pair?
08.12.2021
- U.S. 10-Year Treasury Auction
- U.S. MBA Mortgage Applications Index
Yesterday, the three major U.S. stock indices all extended their gains, and the risk-on market—characterized by rising stocks, interest rates, and crude oil prices—continued.Concerns over the spread of the Omicron variant of the novel coronavirus have subsided, leading to a wave of buy orders across the market. WTI crude oil has rebounded to $71.80 per barrel.
In the foreign exchange market, the GBP/JPY pair, which had been falling, is beginning to stabilize, with trading now centered around the 150.45 level.From a technical perspective, GBP/JPY was capped by the 200-period SMA on the hourly chart and subsequently fell by about one-third; however, it is now attempting to rebound during today’s Asian trading session. We need to carefully assess whether buying interest will emerge in GBP/JPY.
Today’s schedule includes remarks by ECB President Lagarde at 17:15, South African retail sales at 20:00, the U.S. MBA Mortgage Applications Index at 21:00, the Bank of Canada’s policy rate announcement and statement at 24:00, the U.S. JOLTS survey,at 24:30, U.S. weekly crude oil inventories; at 27:00, a U.S. 10-year Treasury auction; at 6:45 the following day, New Zealand’s third-quarter manufacturing sales; and at 7:00, remarks by RBA Governor Lowe.With stock prices rising globally, I want to closely monitor whether the currency markets will also shift toward a risk-on sentiment.
Author: Keisuke Sakurai
