Fed hawkishness sparks market moves [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

The US bonds extended their rally as one of the Federal Reserve’s (Fed) most hawkish members, Christopher Waller, said in a speech named ‘Something appears to be giving’ that he is ‘increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%’.

The US yields tumbled, gold rallied past the $2050 level, the EURUSD traded above the 1.10 psychological level, Cable surpasssed 1.27, and the USDJPY tipped a toe below the 147 level and below its 100-DMA.

Note that we have a few technical levels across currencies and commodities that are being tested as a result of a significant meltdown in the US yields and the RSI indicators across most asset classes are screaming that it’s time for correction.

Moving forward, have a look at the latest US GDP update today and at the latest European inflation updates between today and tomorrow.

On separate note, US crude rebounded past $76pb, but gains remain timid as the latest news suggest that Angola and Nigeria continue to resist to Saudi’s demand for a joint effort to reduce supply and that there is a chance that the OPEC meeting, which is rescheduled to tomorrow, could be delayed again.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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