Attention May Turn to Renewed Inflation Fears and U.S. Dollar Movements
10.01.2022
- U.S. Wholesale Sales
- Turkey: Employment Statistics
Last weekend, the three major U.S. stock indices all continued to decline, resulting in a market environment characterized by falling stock prices, rising interest rates, and lower crude 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 10-year U.S. Treasuries rose, the U.S. dollar fell. The euro rose against the dollar from 1.129 to 1.136.However, the EUR/USD pair has been stagnating, unable to break out of the trading range it has been in since late November of last year, and continues to trade within the 1.122–1.137 range. We will be closely monitoring whether comments from key officials or geopolitical news will cause the pair to break decisively in one direction or the other.
Today, Turkey’s employment statistics are scheduled for release at 16:00 European time, followed by the Eurozone’s employment statistics at 19:00, and U.S. wholesale sales figures during U.S. trading hours.(Today’s scheduled appearance by U.S. Federal Reserve Bank of Atlanta President Bostic at a conference has been postponed.) Although the Japanese market is closed today for a holiday, we intend to watch the situation carefully to see if any clear movements emerge during European trading hours.
