The dollar was bought last weekend, the dollar-yen pair was on the 110-yen level, and the euro-dollar pair sank below $ 1.18. According to US employment statistics in July, the unemployment rate fell more than expected from the previous month, the growth in non-farm payrolls exceeded expectations, and June was revised upward. As a result, concerns about a slump in the US economic recovery due to the spread of the Delta strain of the new coronavirus have receded, and the Federal Reserve’s (FRB) observations of an early reduction in asset purchases have reignited.
Twice
Since there were no conspicuous economic indicators announced in overseas markets after this, and there were few clues, the impact of the favorable results of the US employment statistics in July remained persistent, and the dollar was likely to be bought. The dollar has been particularly strong against the euro these days, with the euro dollar temporarily declining to around 1.1743, the lowest level since April 5th. If the Eurodollar breaks below the April 5 low of 1.1738, it could try the year-to-date low of 1.1704 on March 31. If it goes down further, the low of 1.1603 on November 4th last year will be the target for the downside.
Regarding the remarks of financial officials, Bostic, the US Federal Reserve Bank of Richmond, will participate in the virtual event, and Birkin, the US Federal Reserve Bank of Richmond, will give a lecture. Following the good results of July’s US employment data released last weekend, it will be interesting to see what the views are on the tapering of asset purchases.
Basically, we will continue to buy US dollars this week. The price has been high since the previous week, but if there is a depth, I would like to buy it.
