Watch for any hawkish tone in the Beige Book
12.01.2022
- U.S. Consumer Price Index
- U.S. 10-Year Treasury Auction
Yesterday, the three major U.S. stock indices all rose, creating a risk-on market characterized by higher stock prices, higher oil prices, and higher gold prices. As soon as Fed Chair Powell’s testimony began yesterday, stock prices recovered rapidly, closing higher across the board. WTI crude oil rose to $81.30, while gold climbed with momentum toward last month’s high of $1,830 and is currently trading around $1,818.
In the foreign exchange market, while cross-yen pairs have generally rebounded, the USD/JPY pair has faced resistance at higher levels. After rising from 115.03 to 115.66, the pair has largely traded sideways, and the trend of lower highs continues. Today’s economic data releases will likely have a significant impact on the pair’s future direction, depending on whether it breaks below the recent low of 115.03 with a closing price below that level.
Today’s schedule includes: Eurozone Industrial Production at 7:00 PM, the U.S. MBA Mortgage Applications Index at 9:00 PM, the U.S. Consumer Price Index at 10:30 PM, remarks by Bank of England Deputy Governor Kan at 11:15 PM, U.S. Weekly Crude Oil Inventories at 12:30 AM, the U.S. 10-Year Treasury Auction at 3:00 AM, and remarks by U.S. Federal Reserve Bank of Minneapolis President Kashkari:Remarks by Kashkari, President of the Minneapolis Fed, at 28:00, and the U.S. Federal Reserve Beige Book and U.S. budget balance at 28:00. We will closely monitor the direction of the U.S. dollar while paying close attention to today’s economic indicators scheduled for release during U.S. trading hours.
Author: Keisuke Sakurai
