All eyes are on the direction of the U.S. dollar, which has been showing resilience.
25.01.2022
- Germany's IFO Business Climate Index
- U.S. 5-Year Treasury Auction
Yesterday, in the U.S. market, the three major stock indices recovered toward the close, resulting in a trading session characterized by flat stock prices, lower interest rates, and higher gold prices.The fear index (VIX) rose rapidly, approaching 30, and currently stands at 29.9. While the cryptocurrency market continued to decline and the overall market trend remained bearish, gold held up well, rising to $1,842.
In the foreign exchange market, the U.S. dollar emerged as the strongest currency as of yesterday. While cross-yen pairs generally fell, the USD/JPY held its ground, touching this month’s low of 113.46 before rebounding.The pair rebounded during today’s Asian session as well and is currently trading around 113.80. However, tomorrow’s FOMC meeting will provide clues as to the pace of monetary policy normalization, and the dollar’s direction will likely become clearer based on the outcome.
Today, during European trading hours, the Turkish Economic Sentiment Index and Capacity Utilization Rate will be released at 16:00, followed by the German IFO Business Climate Index at 18:00 and the UK CBI Business Survey at 20:00. During U.S. trading hours, the U.S. S&P/Case-Shiller Home Price Index will be released at 23:00,at 24:00, the U.S. Consumer Confidence Index and the Richmond Fed Manufacturing Index; at 27:00, the U.S. 5-year Treasury auction; and at 6:45 the following day, New Zealand’s trade balance. We will be watching closely to see how the U.S. dollar, which has been holding steady, will move.
Author: Keisuke Sakurai
