Feds Powell sticks to his story. Saves the stock market

Feds Powell sticks to his story. Saves the stock market

Foreign exchange information for North American merchants on February 23, 2021

The US inventory market was underneath some excessive strain particularly within the Nasdaq and Russell 2000 market sectors on fears of inflation and the prospects of the Fed unwind of stimulus measures because of it.  

With the Fed’s Powell testimony schedule for 10:00 AM begin  (and with the studying of the testimony together with different pleasantries and posturing related to such proceedings), there have been minutes of tension that took the Nasdaq and Russell indices down -3.91% and -3.64% respectively within the first hour of buying and selling. The S&P index fell -1.83% and was on its solution to the sixth down day in a row. 

Nonetheless, because the testimony went alongside, Powell took a number of the worry out of the market (at the least) and the value began to restoration in a uneven method. 

The Fed Chair caught to his latest story of extra transitory inflation and the necessity to get the Covid job losses again as his focus. He didn’t take the bait to outline markets as bubbles.    He even added that “we’ve got not been making substantial progress towards targets previously three months”. 

After all, the “markets” do not essentially commerce on what’s within the rear view mirror, however extra on what’s down the highway (therefore why bond yields can nonetheless go larger). However, his feedback did assuage a number of the inventory markets anxiousness. 

The main indices ended the day combined (European markets have been additionally combined), however the “finish of the world” as we all know it was averted (for in the present day at the least). 

Forex news for North American traders on February 23, 2021

Within the foreign exchange market, the most important mover was the CHF to the draw back because it noticed declines of -0.87% to -1.40% throughout the main currencies. The largest decline got here towards the GBP (the GBP was the strongest) at -1.40%. It misplaced -1.05% vs the US and -0.96% vs the EUR.  Flows could also be giving up on the secure haven advantages of the CHF. The USDCHF is closing above its 100 day MA for the 2nd time this month and the 2nd time because the finish of Might.  The GBPCHF and EURCHF have been working larger since early January for the GBPCHF (helped by Brexit) and early February for the EURCHF). 

For the USD, the buck is ending the day combined with declines vs the GBP, CAD and NZD, and positive aspects vs the CHF (principally)


In different markets:

  • Spot gold fell -$4.00 to $1805.73
  • Spot silver fell -0.46 to $27.67
  • The value of Bitcoin fell -$6976 to $47967. The low value reached $44888. The excessive was up at $55043.  
  • WTI crude oil for April supply closed close to unchanged at $61.67

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