Should we focus on the contrasting strength and weakness of the U.S. dollar and European currencies?
24.01.2022
- European Manufacturing/Services PMI
- Chicago Fed National Activity Index
Last weekend, the three major U.S. stock indices all continued to decline, resulting in a market environment characterized by falling stock prices, low interest rates, and rising crude oil prices. The yield on the 10-year U.S. Treasury note stood at around 1.77%, while WTI crude oil reached its highest level since September 2018, rising to $85.80 per barrel.The VIX (Volatility Index) rose to 28.8. The Fear & Greed Index, which measures investor sentiment, fell to 43.
The foreign exchange market opened without a gap. Although stock prices are falling globally, the foreign exchange market remains relatively calm, and the stalemate between European currencies and the U.S. dollar continues. The EUR/USD pair fell slightly to 1.130 before recovering. During today’s Asian trading session, it has been trading within a range of 1.127 to 1.137.We will be watching closely to see if the US Federal Open Market Committee (FOMC) meeting scheduled for the 26th of this week clarifies the direction of the market.
Today, at 5:15 PM, France’s Manufacturing/Services PMI; at 5:30 PM, Germany’s Manufacturing/Services PMI; at 6:00 PM, the Eurozone’s Manufacturing/Services PMI; and at 6:30 PM, the UK’smanufacturing and services PMIs, the U.S. Chicago Fed National Activity Index at 10:30 PM, the U.S. manufacturing and services PMIs at 11:45 PM, and a U.S. 2-year Treasury auction at 3:00 AM. Since the PMIs for each country are preliminary figures, please be aware of sudden price fluctuations that may accompany the release of the results.
Author: Keisuke Sakurai
