This report reviews the key factors likely to draw market attention, focusing on the release of the US consumer price index (CPI), movements in long-term yields, and the monetary policy announcements from Japan and the US scheduled for the week after next.
The focus today is the release of the US consumer price index and movements in long-term US Treasury yields, and the market’s interest-rate outlook could change depending on the CPI results. In addition, with monetary policy announcements from both Japan and the US scheduled for the week after next, the view has emerged that the currency market will become more sensitive than before to the strength or weakness of the US dollar and movements in individual currency pairs.
The article cites earnings announcements by major companies as the US earnings season begins, reporting that developments at Morgan Stanley, Bank of America, BlackRock and Progressive are among the market’s points of focus. It also points out that the market reaction after the consumer price index is released could be key to the direction of monetary policy going forward.
Today’s events also include remarks by Federal Reserve Vice Chair Bowman and the release of the Beige Book, drawing attention to comments from US monetary officials and leading indicators of monetary policy. The view has also been expressed that policy developments in Japan and Europe, as well as trade- and price-related indicators, will affect one another.
Overall, the report says that the direction of the US dollar, yen and euro, expectations for US monetary policy, and episodes of dollar strength or weakness ahead of policy announcements in Japan and the US could shape the market. CPI and long-term yield trends are therefore regarded as important indicators for assessing the future course of the foreign-exchange market.