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, leading to a risk-on market characterized by higher stock prices, higher crude oil prices, and higher gold prices.As Fed Chair Powell’s congressional hearing began yesterday, stock prices recovered rapidly, closing higher across the board. WTI crude oil rose to $81.3, while gold surged 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 are generally rebounding, the USD/JPY pair is facing 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.Depending on today’s economic data releases, whether the pair breaks below the recent low of 115.03 with a real body candle will likely have a significant impact on its future direction.
Today’s schedule includes: Eurozone industrial production at 19:00, the U.S. MBA Mortgage Applications Index at 21:00, the U.S. Consumer Price Index at 22:30, remarks by Bank of England Deputy Governor Kanrif at 23:15, U.S. weekly crude oil inventories at 24:30,at 27:00, the U.S. 10-year Treasury auction and remarks by Kashkari, President of the Federal Reserve Bank of Minneapolis; and at 28:00, the U.S. Federal Reserve Beige Book and the U.S. budget balance are scheduled.We will keep a close eye on the direction of the U.S. dollar while paying close attention to today’s economic data releases during U.S. trading hours.
Author: Keisuke Sakurai
