All Eyes on Germany's Fourth-Quarter GDP (Preliminary Estimate)
28.01.2022
- France: Producer Price Index
- Germany: Q4 GDP (Preliminary Estimate)
Yesterday, the three major U.S. 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 risen as high as 1.85%, fell to 1.81%. Meanwhile, the yield on the 2-year U.S. Treasury note surged to 1.19%.U.S. durable goods orders for December, released yesterday, declined for the first time in three months, with notable drops in orders for commercial aircraft and other items.
In the foreign exchange market, Oceania currencies have been weakening amid falling crude oil prices, and the GBP/AUD pair has risen by about 150 pips from 1.889 to 1.904. If this upward trend continues, the pair could target the recent daily high of 1.912; therefore, it is advisable to remain cautious regarding the bullish momentum.
Today, during European trading hours, France’s Q4 GDP will be released at 15:30, followed by Germany’s Import Price Index and Turkey’s Economic Confidence Index at 16:00, and France’s, at 17:00 the Swiss KOF Leading Index, at 18:00 Germany’s Q4 GDP (flash estimate), and during U.S. trading hours at 22:30 the U.S. Core PCE Deflator, and at 24:00 the U.S. University of Michigan Consumer Sentiment Index (final reading). I plan to monitor currency strength while keeping an eye on the economic indicators starting during European trading hours.
Author: Keisuke Sakurai
