Caution over U.S. interest rate trends and the movement of the U.S. dollar
06.01.2022
- Challenger Job Cuts Forecast (U.S.)
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, rising interest rates, and flat crude oil prices.Following the release of the minutes from the December FOMC meeting yesterday, the yield on the 10-year U.S. Treasury note rose to 1.71%. In addition, mirroring the decline in stock prices, the cryptocurrency market also fell, with BTSUSD dropping about 7.7% from the previous day and trading in the $42,800 range.
In the foreign exchange market, cross-yen pairs are generally declining, while the U.S. dollar remains flat against the euro. The EUR/USD pair struggled to gain ground starting in yesterday’s Asian session but was pushed back and is currently trading around 1.131. Technically, the EUR/USD pair is trading within a range of 1.120–1.138, so we will be watching closely to see if any movement emerges toward the end of the week.
Today’s economic indicators include German manufacturing orders at 4:00 PM, the UK services PMI (final reading) at 6:30 PM, the Eurozone producer price index at 7:00 PM, U.S. Challenger job cuts at 9:30 PM, the German consumer price index (flash estimate) at 10:00 PM,22:30: Canada’s Trade Balance, U.S. Initial Jobless Claims, and U.S. Trade Balance; 24:00: U.S. ISM Non-Manufacturing PMI; 25:30: U.S. Daily: Remarks by the President of the Federal Reserve Bank of San Francisco; and 27:15: U.S. Daily: Remarks by the President of the Federal Reserve Bank of St. Louis. We will monitor currency strength and weakness while paying close attention to economic data releases during U.S. trading hours.
Author: Keisuke Sakurai
