Greenback and Yields Soared, But Shares Weakened On Powell's Speech

Market Reviews

As expected, the new Fed Chair Jerome Powell didn’t declare any policy changes and was optimistic about the future of the US economy and inflation. Fed fund futures are now pricing in 33.7% odds for 4 rate hikes in 2018. Shares responded with declines while the greenback and yields increased. DOW fell -299.24 points (-1.16%) to 25410.03. S&P 500 reduced -35.32 points (-1.27%) at 2744.28. 10 year yield rose 2.9 handle (0.049) to close at 2.908.

Dollar index hit the maximum of 90.49 and it’s on track to the key structural resistance of 91.01. And now, the greenback is trading as the firmest. Meanwhile, National Australia Bank downgraded the prognosis for Reserve Bank of Australia’s interest rate in 2018. That is, RBA is projected to hike once this year due to "weak wages growth and slow progress”.

British Gfk consumer confidence declined from -9 to -10 this month. BRC shop price index fell -0.8% yoy. New Zealand ANZ business confidence grew from -37.8 to -19.0. Japanese retail sales increased 1.6% yoy in prior month. Industrial production is down -6.6% mom. Chinese manufacturing PMI decreased from 51.3 to 50.3 in February. Non-manufacturing PMI declined from 55.3 to 54.4. Today, Eurozone will publish Consumer Price Index, Germany will feature jobless numbers and Gfk consumer sentiment, Swiss will announce KOF leading indicator, US will present Gross Domestic Product, Chicago PMI as well as pending home sales. Canada will show IPPI and RMPI.