Powell is coming up next
The market is looking for some kind of hint at a pause. If there's even a shred of anything dovish it's going to be in the headlines.
However I'd bet that the speech reiterates all the same themes we've heard from the Fed recently and from Clarida yesterday:
Employment market is strong
Economy is robust
Wages are picking up
Downside risks are diminished
Gradual hike path will continue
The market is dying to get something dovish but I think it will be caught wrong footed and the US dollar, and equity markets (especially) are vulnerable.
However heading into the speech, US equity shorts appear to be covering, with the index near the highs of the day.
Watch the speech live here.
