Attention is likely to focus on renewed inflation concerns and movements in the U.S. dollar
10.01.2022
- U.S. Wholesale Sales
- Turkey: Employment Statistics
Last weekend, the three major U.S. stock indices all fell further, resulting in a market environment characterized by falling stock prices, rising interest rates, and lower oil prices.In the U.S. employment report released last Friday, while the unemployment rate fell from 4.2% the previous month to 3.9%, strong wage growth was revealed, reigniting inflation concerns. Bond selling accelerated, and the yield on the 10-year U.S. Treasury note temporarily rose to 1.79%.
As the yield on the 10-year U.S. Treasury note rose, the U.S. dollar fell. The euro/dollar exchange rate rose from 1.129 to 1.136. However, the pair has been stuck in a trading range since late November of last year and remains range-bound between 1.122 and 1.137. We will be watching closely to see if comments from key officials or geopolitical news will cause the pair to break decisively in one direction or the other.
Today, Turkish employment data is scheduled for release at 4:00 p.m. CET, followed by European employment data at 7:00 p.m. CET, and U.S. wholesale sales figures during U.S. trading hours. (Today’s scheduled appearance by R.B. Bostic, President of the Atlanta Federal Reserve Bank, has been postponed.) Although the Japanese market is closed today for a holiday, we will closely monitor the situation to see if any clear market movements emerge during European trading hours.
Author: Keisuke Sakurai
