Fed hawkishness sparks market moves [Video]
|The US bonds extended their rally as one of the Federal Reserve’s (Fed) most hawkish members, Christopher Waller, said in a speech named ‘Something appears to be giving’ that he is ‘increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%’.
The US yields tumbled, gold rallied past the $2050 level, the EURUSD traded above the 1.10 psychological level, Cable surpasssed 1.27, and the USDJPY tipped a toe below the 147 level and below its 100-DMA.
Note that we have a few technical levels across currencies and commodities that are being tested as a result of a significant meltdown in the US yields and the RSI indicators across most asset classes are screaming that it’s time for correction.
Moving forward, have a look at the latest US GDP update today and at the latest European inflation updates between today and tomorrow.
On separate note, US crude rebounded past $76pb, but gains remain timid as the latest news suggest that Angola and Nigeria continue to resist to Saudi’s demand for a joint effort to reduce supply and that there is a chance that the OPEC meeting, which is rescheduled to tomorrow, could be delayed again.
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