CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Hawkish Powell Emboldens USD Rally, DXY Matches 2023 Highs

FOREX
  • The greenback extended its initial strength on Tuesday with a set of hawkish remarks from Fed Chair Powell underpinning an impressive USD rally. The USD index (1.21%) has risen to the best levels of the year and is currently hugging session highs as we approach the APAC crossover.
  • While it was not a big surprise that Powell envisages a higher potential terminal rate, the significant and surprising development that Powell suggests they could re-accelerate to 50bp hikes has placed upward pressure on US yields, with the 2-year yield rising to 5%, the highest level since 2007.
  • The broad dollar strength has most heavily weighed on the Australian dollar, impacted by not only a dovish RBA but also the associated pressure on major equity indices throughout the US session.
  • AUDUSD (-2.20%) continues to plumb fresh YTD lows and has taken out key support at 0.6629, the Dec 20 low. In more recent trade, the pair has slipped below the 0.66 handle to touch 0.6582, narrowing the gap with the next support seen at 0.6547, a Fibonacci retracement.
  • GBPUSD (-1.67%) has now breached key support at 1.1842, the Jan 6 low, which highlights a broader medium-term reversal threat and a potential double top pattern on the daily chart. Below here, the focus turns to 1.1764, the November 17 low.
  • USDJPY has recently pierced through last Thursday’s high of 137.09, placing the pair at a fresh 11-week high and signalling scope for a move towards 138.17, the Dec 15 high.
  • Potential comments from RBA Governor Lowe kick off Wednesday’s docket before German IP and retail sales data. ECB’s Lagarde may also speak before the Bank of Canada decision/statement. Regarding the US, ADP employment and JOLTS data are scheduled before Friday’s NFP report.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.