USD stronger after Powell speech
February 28, 2018
Europe Market Movements
USD Stronger: The EUR has been falling against the USD after Germany’s CPI did worse than expected yesterday. The single currency was trading this morning at 1.2222, down from 1.2335 yesterday at the same time. The euro traders are now eyeing the European CPI today, but don’t ignore the Swiss Zew survey. The GBP has also been falling, in response to a disappointing GfK Consumer Confidence yesterday. No events are scheduled today in the UK, but US data could influence Sterling.
US Market Movements
The USD has surged in response to new Federal Reserve chair, Jerome Powell’s optimistic analysis of the US economy to Congress yesterday. This morning the USD was trading at 107.119 against the JPY, up from 106.8780 yesterday at the same time but as at the time of writing the JPY seems to be recovering lost ground. Against the Aussie it is trading at 1.2767, up from 1.2745 yesterday. Data today may further influence the USD but follow Crude Oil Inventories today which might strengthen the CAD.
Asia/Oceania Market Movements
The Asia-Pacific markets have been falling today, mirroring a stock selloff in the US yesterday. The Shanghai Composite has slipped by 0.84%, the Hang Seng by 1.30% and the Nikkei by 1.44%. The Australian S&P/ASX also fell as did Tokyo’s Topix.
Gold has been a victim of the USD recovery with falling prices but today, we’re seeing a mild recovery. Black gold, also known as Crude Oil has also been falling, weighed down by fears of an economic slowdown in the giant economies of Japan and China and an increase in US stockpiles. On the radar, today’s EIA Crude Oil Inventories.
US stocks fell yesterday in response to the new Fed chair’s speech. The Dow closed down by 2.99.24 points, S&P fell by 35.32 points and Nasdaq composite by 1.23%.
|9:00 GMT||CHF: Zew Survey|
|10:00 GMT||EUR: CPI (YoY)|
|13:30 GMT||USD: GDP|
|15:30 GMT||USD: Crude Oil Inventories|