Next up for markets: New Fed Chair Powell weighs in on the interest rate debate
- Fed Chair Jerome Powell’s testimony next week is the next big catalyst markets are watching, hoping the new central bank chair will be a referee in the tug-of-war between stocks and bonds.
- Ahead of his testimony, the Fed is scheduled to release its Monetary Policy Report on Friday morning, a blueprint of sorts for his comments.
- Powell may stray from the report with his personal outlook next week, and markets are watching for comments on inflation and interest rates after Wednesday’s wild reaction to the minutes from Janet Yellen’s last meeting. Read More @ https://www.cnbc.com/2018/02/22/next-up-for-markets-new-fed-chair-powell-weighs-in-on-the-interest-rate-debate.html?__source=twitter%7Cmain
Dollar sags as recovery fades amid U.S. yield decline
The index had reached a 10-day high of 90.235 on Thursday, from a three-year trough of 88.253 late last week, before its rally ran out of steam. It was on still on track to gain 0.7 percent on the week.
“The dollar had been gaining for the past few days, and it was time for some selling to emerge as long-term U.S. yields pulled back with Treasuries finding some bids,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. Read More @ https://www.reuters.com/article/us-global-forex/dollar-sags-as-recovery-fades-amid-u-s-yield-decline-idUSKCN1G703E
EUR TAKES THE LEAD BACK TO THE DRIVER SEAT – WE LOOK AT THE TECHNICAL CHART.
Euro is forming a nie bullish flag and that will confirm the handle for the CUP. Next target 1.2450.
USD Struggles at $90.
USD retreating after the Head and Shoulder formation, if $89.50 breaks there will be more sell-off on the USD.
TODAY’S NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 5.45am – NZD data was all good – but the rally didn’t last. We stay neutral for NZD.
- 7.30am – Japan CPI was all good for BOJ – time to wind down their triple QQQE. JPY can afford to go 100 vs the USD. We maintain SELL for USDJPY.
- 3.00pm – German Final GDP – be ready for good data – we maintain BUY for EUR.
- 6.00pm – EURO final CPI will be an exciting data to watch – we are maintaining our BUY for EURO.
- 9.30pm – CAD will go to action – USDCAD is seating on the MA200 – we believe the CPI for CAD will be good. We have moved to SELL on USDCAD.
- 11.15pm – the night will end with FOMC member dudley speaks – we believe is going to be neutral and no impact.
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