US Core monthly retails sales will be announced on Friday at 15:30 MT time.
USD: easy there
Jerome Powell just gave an exclusive speech on NBC’s “Today” show. Just so that you understand how exclusive it is: the former Fed Chairman Alan Greenspan appeared before the cameras in 1987 foreshadowing a record drop in the stock market. A similar performance was done by Ben Bernanke in 2009 resuming the financial crisis of that time.
So the appearance of the Fed Chair on the TV is the same like the appearance of a comet in the sky – and similarly is often interpreted as a harbinger of hard realities to come.
What did he say?
The main message was that the situation is not easy, quite special, quite unseen before, but the Fed is prepared and has all it takes to fight back the virus consequences. The main objective of the speech, apparently, was to cool down the market assuring that “we still got ammo”. So it did – the USD eased on the JPY, as the first result of the speech.
USD easy, then?
Yes, quite so. The battle was fierce between the two currencies to secure the 111.70 range of heights, but the speech of Jerome Powell made the USD cede its positions. 108.30 is eyed as support now. Market steamed off.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
The Australian jobs data is announced on Thursday at 03:30 MT time.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.