More Powell: Time to raise interest rates is 'no time soon'. Dollar falls

Author: Greg Michalowski | Category: Central Banks

Dollar moves lower on the headline

The dollar moved to the downside on comments from Powell that:
  • Time to raise the interest rate is 'no time soon'
In the forex market:
  • The EURUSD has moved up to test the 100 hour MA at 1.21719.  
  • The USDJPY moved to test the 200 hour MA at 103.61
  • The USDCHF dipped to new session lows and tested the 38.2% retracement of the move up from the January 6 low at 0.8857
  • The USDCAD dipped below the low from last week at 1.26292
In other markets:
  • Stocks which dipped in the earlier part of the speech has rebounded modestly
  • Gold has moved lower on the back of the lower dollar and is trading up $10.65 or 0.58% $1856.12
  • US yields remain somewhat steady with the 10 year up 0.6 basis points. The 30 year is trading up 1.7 basis points
More from Powell
  • We have not seen a big uptick in defaults and nonfinancial corporate's
  • Fed does not feel any pressure from financial dominance
  • Should build strength of financial system in good times
  • Most focused on getting back into a strong labor market
  • We think we can get back there much sooner than we had feared
  • We were in a good place unemployment in February 2020
  • In the sweep of history, Fed will have policy space in a few years, no need for helicopter money in US
  • US federal debt not on sustainable path
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