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
