All Eyes on 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, and the risk-on sentiment—characterized by rising stock prices, interest rates, and crude oil prices—continued. The Fear Index (VIX) fell below its benchmark 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 euro/yen pair rising more than 100 pips from 127.93 to 129.11. The euro also rose against the U.S. dollar, with the euro/dollar pair climbing from 1.126 to 1.135.It set 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 need to monitor the situation closely to see if the rebound continues.
Today’s schedule includes Japan’s machine tool orders at 15:00 (Asia time), Germany’s trade balance at 16:00 (Europe time), South Africa’s manufacturing production at 20:00 (Europe time), U.S. initial jobless claims at 22:30 (U.S. time), U.S. wholesale inventories (final reading) at 24:00 (U.S. time),at 24:30, U.S. weekly natural gas inventories; at 27:00, a U.S. 30-year Treasury auction; at 28:00, remarks by BOE Deputy Governor Brabel of Canada; and at 6:30 the following day, New Zealand’s Manufacturing PMI.I want to carefully monitor how the euro, which has been strengthening recently, will move from here.
Author: Keisuke Sakurai
