The beginning of the week lacks significant economic indicators. Only releases such as Turkey’s current account balance for September, India’s consumer price index for October, and Germany’s current account balance for September are scheduled. There are no major US economic indicators on the calendar, and the mood is building up in anticipation of tomorrow’s release of the US Consumer Price Index.
Amid this, the remarks of central bankers are likely to draw attention. Today, prominent figures such as De Guindos, ECB Vice President; Breedon, Deputy Governor of the Bank of England; Cook, Federal Reserve Board Governor; and Mann, Member of the Bank of England Monetary Policy Committee, are participating in events and delivering speeches. Both officials from the Bank of England are addressing topics related to climate and financial risks, as well as financial policy. With climate change risks significantly affecting energy and food prices, the stance of financial authorities is expected to change depending on the situation, whether it involves tightening or providing liquidity. If inflation risks are emphasized, it is expected to focus on the rise in long-term bond yields and economic risks. If the focus shifts to economic risks, it may lead to a decrease in yields.
Additionally, this week includes the release of the UK Consumer Price Index on the 15th, which is likely to increase the focus on the pound’s exchange rate.
In the New York market, it may be challenging to find clues with tomorrow’s release of the US Consumer Price Index on the horizon. However, it’s essential to keep an eye on how the market reacts to the weekend reports about the outlook for US credit ratings.
The USD/JPY exchange rate has been rising during the Tokyo market, moving from the lower half to the upper half of the 151 yen range. Currently, it’s trading near 151.80, and the upward momentum appears to be almost one-way. Investors should be cautious as this move approaches the year-to-date high. Comments from the Japanese government and the Bank of Japan, along with the potential for nervous yen buying in the market, should be monitored closely.
Overall, it’s anticipated that today may lack significant market movements as traders await tomorrow’s release of the US Consumer Price Index.