All eyes are on the direction of the euro as it begins to rise
09.12.2021
- Germany's Trade Balance
- U.S. 30-Year Treasury Auction
Yesterday, in the U.S. market, the three major stock indices all rose slightly toward the close, continuing the risk-on sentiment characterized by rising stock prices, interest rates, and crude oil prices.The VIX (fear index) fell below its benchmark level of 20, dropping to 19.9. The Russell 2000, which tracks small- and mid-cap stocks, also rose, closing at 2,271. BTC/USD fell below $50,000 and is trading sideways in the $49,800 range.
In the foreign exchange market, the euro stood out among the yen crosses yesterday, with the EUR/JPY pair rising by more than 100 pips from 127.93 to 129.11. The euro also rose against the U.S. dollar, with the EUR/USD pair climbing from 1.126 to 1.135, setting a new recent high on the hourly chart.Since the EUR/USD pair has been forming higher lows on the 4-hour chart, we will closely monitor the situation to see if the rebound continues.
Today, at 15:00 Asia time, Japan’s machine tool orders will be released; at 16:00 Europe time, Germany’s trade balance; at 20:00, South Africa’s manufacturing production; at 22:30 U.S. time, U.S. initial jobless claims; at 24:00, U.S. wholesale inventories (final);at 12:30 AM, US weekly natural gas inventories; at 3:00 AM, a US 30-year Treasury auction; at 4:00 AM, remarks by BOE Deputy Governor Brabel; and at 6:30 AM the following day, New Zealand’s Manufacturing PMI. I intend to closely monitor how the euro, which has been strengthening recently, will move.
Author: Keisuke Sakurai
