Market wrap: disappoints over lack of fiscal policy from Trump's presser - Westpac
|Analysts at Westpac offered a market wrap.
Key Quotes:
"Global market sentiment: Trump’s eagerly awaited press conference disappointed a market wanting information about fiscal policy. The US dollar and US interest rates fell sharply in response, boosting the AUD and NZD.
Interest rates: US 10yr treasury yields fell sharply after the Trump press conference, from 2.39% to 2.33%, while. 2yr yields fell from 1.20% to 1.15%. Fed funds futures shifted the next fully priced rate cut from June to July.
Currencies: The US dollar index is 0.5% lower, having risen in the leadup to the press conference and fallen sharply afterwards to a one-month low. EUR initially fell from 1.0550 to 1.0454 but then jumped to 1.0623 post-Trump. USD/JPY rose from 116.50 to 116.87 before falling to 114.26 – a one-month low. AUD rose from 0.7352 to 0.7472 post-Trump. Outperformer NZD similarly jumped from 0.6961 to 0.7088. AUD/NZD ranged sideways between 1.0530 and 1.0570."
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