The Chinese risk movement since the beginning of the week has calmed down for the time being. China’s central government has taken a stance of firmly maintaining its zero-corona policy, but in terms of its operation, health authorities have warned some local governments about excessive and uniform corona regulations, which has given the market a sense of security. there is Today, Shanghai-Hong Kong stocks show a calm price movement.
Under such circumstances, today we will have a speech by FRB Chairman Powell. Ahead of next month’s US FOMC, we will enter a blackout period from next week. It seems that the attention of the market is increasing because it will be the timing just before that.
However, it is unlikely that the content will differ greatly from what the market has envisioned thus far. The next FOMC will reduce the range of interest rate hikes, the strong stance to control inflation, and the possibility that the terminal rate level will be raised depending on inflation.
In terms of timing, it should be noted that the December FOMC meeting is approaching, making it easier for the market to react to a slowdown in the pace of interest rate hikes.
Considering the slowdown in the pace of interest rate hikes, the US dollar has been sold, but the movement is sluggish.
First, pay attention to price movements after US ADP employment figures and US GDP.