Powell poaches USD bears with bullish.........>

FOREX: Powell poaches USD bears with bullish inflation outlook

-The dollar index added close to 0.5% and touched the highest level since Feb9

as new Fed chair Powell outlined a firmly bullish outlook on inflation this

year: "confidence on inflation is getting stronger", "data since December

suggests strengthening economy". As a result, EUR/USD fell to $1.2222, the

lowest level in 12 sessions. USD also got a second tailwind throughout the day

with bank models continuing to suggest dollar demand into month-end.

-SEK was the poorest performer, with EUR/SEK touching the highest levels since

early 2010 as markets continue to push back their Riksbank rate hike

expectations to the latter half of this year.

-Falling equity markets across Europe and the US lifted haven currencies,

placing CHF and JPY second to just the greenback today.

-Weaker commodities (Brent crude, gold and copper futures all down over 1%) have

led NZD and AUD lower, leading AUD/USD to test the 200 and 100DMAs to the

downside.

-Japanese retail sales, French CPI, US GDP and Chicago PMI all due tomorrow.