Free Trial

Markets Interpret Powell's Testimony as Hawkish, Boosting Greenback

CROSS ASSET
  • Markets err hawkishly in response to the initial coverage of Powell's testimony, with markets narrowing in on the Chair's mention of possibly larger rate hikes as well as a higher terminal rate.
  • The greenback and yields move higher in tandem, while emerging market currencies and equities are knocked lower. The e-mini S&P drops over 25 points in the immediate reaction, while EUR/USD, GBP/USD plumb fresh session lows.
  • The Treasury yield curve extends inversion, with 2y10y spread hitting a new low at -96.976.

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.