A Monday in Adjustment Mood, with Subsequent Overseas Markets Facing a Lack of Material

The week has begun in an adjustment mood. The strong dollar trend seen at the end of last week has paused. Following comments from Finance Minister Kanda warning against excessive yen depreciation, the dollar-yen briefly tested the 151.05 level, attempting to break below the significant threshold. The Chinese yuan is also seeing dollar-selling and yuan-buying, interpreted as the authorities' move to defend the currency by adjusting the yuan's reference rate to strengthen it. Both are moves that counteract the trend of a stronger dollar. However, the dollar-yen has not fallen below the 151 level, indicating a resilient dollar market.

As for the upcoming overseas market, the economic indicator to be released is the U.S. new home sales for February. The market consensus expects an annualized 675,000 units, an increase from the previous 661,000 units. It seems that the stabilization of U.S. mortgage rates is bringing some optimism to the housing industry.

In terms of speaking events, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, is scheduled to participate in a panel discussion. Reports at the end of last week indicated a shift in his view to one rate cut this year due to persistent inflation. It will be interesting to see if today’s content will also be hawkish. Additionally, Bank of England's Mann is set to attend an economic conference, and FRB's Cook will give a lecture on the dual mandate (the two responsibilities of "maximum employment" and "price stability").

Though the strong dollar trend has paused during Tokyo hours, it remains to be seen how much adjustment will take place in the subsequent overseas markets. Following this, it would be crucial to check whether the strong dollar trend resumes after a series of statements from U.S. financial authorities.

Today is assumed to be range-bound.