All Eyes on Germany's Fourth-Quarter GDP (Preliminary Estimate)
28.01.2022
- France: Producer Price Index
- Germany: Fourth-Quarter GDP (Preliminary Estimate)
Yesterday, in the U.S. market, the three major stock indices all fell toward the close, leading to a risk-off market characterized by falling stock prices, lower interest rates, and a decline in gold prices. The yield on the 10-year U.S. Treasury note, which had temporarily risen to 1.85%, fell to 1.81%.The yield on the U.S. 2-year Treasury note, however, surged to 1.19%. U.S. durable goods orders for December, released yesterday, declined for the first time in three months, with a notable drop in orders for commercial aircraft and other items.
In the foreign exchange market, Oceania currencies have been weakening in tandem with the decline in crude oil prices, and the GBP/AUD pair rose by about 150 pips from 1.889 to 1.904.If the GBP/AUD pair continues to rise, it could target the recent daily high of 1.912; therefore, it is advisable to remain cautious of the upward momentum just in case.
Today, during European trading hours, France’s fourth-quarter GDP will be released at 15:30, followed by Germany’s import price index and Turkey’s economic confidence index at 16:00, France’s producer price index at 16:45, Switzerland’s KOF Leading Index at 17:00, and Germany’sQ4 GDP (flash estimate), and during U.S. trading hours, the U.S. Core PCE Deflator at 22:30 and the U.S. University of Michigan Consumer Sentiment Index (final reading) at 24:00 are scheduled for release. I plan to monitor currency strength and weakness while keeping a close eye on the economic indicators starting during European trading hours.
Author: Keisuke Sakurai
