USD resurgence after Powell Testimony
Hi traders, today we have run over the reaction to the Fed testimony after it sent shock waves through the markets.
The policy looks more decisive now, and Powell looks more in line with other members and the comments we have seen from them. The peak rate figure could be higher than first expected. Rate rises could pick up if the data warrants it. Overall inflation is seen as moderate, but it could remain bumpy.
Traders jumped back into the USD and fled risk assets. Gold and AUD, and other precious metals were hardest hit. Stock indices retreated, and we also saw oil drop by 4% as it looks like traders are concerned about recession and demand.
Part two of the testimony and US employment data to come. Will the fireworks continue? Find out in my next report.
Today’s Analysis Update Video
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