Attention is turning to the direction of the U.S. dollar, which has been showing resilience
25.01.2022
- Duke-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.
As of yesterday, the U.S. dollar emerged as the strongest currency in the foreign exchange market. While cross-yen pairs generally fell, the USD/JPY pair held its ground, touching a monthly low of 113.46 before rebounding. It continued to rebound during today’s Asian trading session and is currently trading around 113.80. However, tomorrow’s FOMC meeting will likely provide some clarity on the direction of the U.S. dollar, depending on the pace at which monetary policy normalization is expected to proceed.
Today, at 4:00 p.m. CET, Turkey’s Economic Sentiment Index and Capacity Utilization Rate will be released; at 6:00 p.m., Germany’s IFO Business Climate Index; at 8:00 p.m., the UK’sCBI Business Survey, followed by the U.S. S&P/Case-Shiller Home Price Index at 11:00 PM U.S. time, the U.S. Consumer Confidence Index and the U.S. Richmond Fed Manufacturing Index at 12:00 AM, the U.S. 5-year Treasury auction at 3:00 AM, and the New Zealand Trade Balance at 6:45 AM the following day. We will be watching closely to see how the U.S. dollar, which has been holding steady, will move.
Author: Keisuke Sakurai
