Powell effect soothes markets further,........>

FOREX: Powell effect soothes markets further, pressuring JPY

-After the resolutely positive close on Wall Street Tuesday (S&P500 finished

higher by well over 2%) Asia-Pacific and European equities followed suit,

helping inject a modest dose of risk-on to global asset markets. JPY sits at the

bottom of the pile ahead of the NY crossover, with CHF not far behind, although

USD/JPY is yet to edge to the best levels of the week. A climb through Monday's

Y108.45 opens intraday resistance at Y108.64 and Y108.89. The tentative gains

for high-beta FX have left USD behind, pressing the USD index below the 100-dma.

-At the other end of the scale, NZD is on the front foot as the RBNZ's assistant

governor squashed any bets that the NZ central bank would follow the RBA's lead

and cut rates anytime soon: rates "will remain broadly around current levels for

the foreseeable future". NZD firmed through the 50-dma at $0.6641 and a close

above would be the first since late March.

-Today is the second day of the Fed's policy framework conference, with speeches

scheduled from Clarida, Bowman and Bostic. Data includes US ADP employment

change, final US PMI revisions and the ISM non-manufacturing index for May.