Forexlive Americas FX news wrap: Market senses a less-hawkish Fed


Markets:

  • S&P 500 up 115 points, or 3.0%, to 3914
  • US 10-year yields up 6.8 bps to 3.14%
  • WTI crude oil up $2.79 to $107.66
  • Gold up $4 to $1826
  • AUD leads, JPY lags

After hiking by 75 basis points instead of the 50 bps he long-ascribed to, Powell cited the jump in inflation expectations in the UMich consumer sentiment survey as a factor. Well, he might have waited until the final data was out, as the numbers were lowered.

The market jumped on that and the odds of just a 50 bps hike in July roughly doubled to 27%. That sentiment weighed on the US dollar and boosted stocks as well with some particularly large moves in the commodity currencies.

CAD was doubly boosted by a rebound in oil that left crude down just $2 on the week — a far cry from the mid-week crash. After touching 1.3000 in Asia, USD/CAD finished on the lows at 1.2880.

AUD/USD was similarly strong and found some breathing room above the double bottom 0.6833 in a climb to 0.6937.

The growing problem is the push-and-pull in bonds. The better tone on risk assets took 10-year yields from a low of 3.03% to 3.14%, with less worry about a recession starting to mean a shift back to worries about inflation. That’s a tenuous dynamic that leaves a narrow window for an extension of this price action.

The US dollar was broadly weak but made some progress against the yen.

Curiously, the pound was able to find few bids despite the positive risk tone. Some of that relates back to worries about growth in the eurozone. For its part, the euro managed to climb 30 pips on the session.

Have a great weekend.



Source link

Related articles

Cairn, EMGS to execute 3D CSEM survey for deepwater exploration, offshore India

Cairn Oil & Fuel, India’s largest non-public oil and fuel E&P firm, is partnering with Norway-based Electromagnetic Geoservices (EMGS), to amass a 3D Managed Supply Electro-magnetic (CSEM) survey for its exploration marketing campaign...

What’s the distribution of forecasts for the US NFP?

Why it is essential?The ranges of estimates are essential when it comes to market response as a result of when the precise information deviates from the expectations, it creates a shock impact. One...

Apple modifications US App Retailer guidelines to let apps redirect customers to their very own web sites for funds

Apple has modified its App Retailer guidelines within the U.S. to let apps hyperlink customers to their very own web sites to allow them to purchase subscriptions or different digital items. This variation...

Blockchain Agency Dinari Secures $12.7M to Simplify Investing in U.S. Inventory Market

Dinari Funding:- The U.S. inventory market is the biggest equities market on this planet. It serves as...

Rush Enterprises, Inc. (RUSHA) Q1 2025 Earnings Name Transcript

Rush Enterprises, Inc. (NASDAQ:RUSHA) Q1 2025 Earnings Convention Name Might 1, 2025 10:00 AM ET Firm Individuals Rusty Rush - Chairman, President & CEOSteven Keller - CFO Convention Name Individuals Daniel Imbro -...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com