Yen and US Dollar May Rise on Powell Comments, Pound Eyes Carney
TALKING POINTS – POWELL, YEN, US DOLLAR, BREXIT, POUND, CARNEY
- Yen up, Aussie Dollar down as rally on US-China trade deal hopes unravels
- Comments from Fed Chair Powell may boost US Dollar, sour market mood
- Pound up on Brexit delay hopes but Carney testimony may cool momentum
The sentiment-linked Australian Dollar fell with Asia Pacific stocks while the anti-risk Japanese Yen traded higher as financial markets’ mood soured, unable to find follow-through on yesterday’s exuberance. That rally was triggered as US President Donald Trump opted to delay a tariff hike on $200 billion in Chinese imports that was slated for on March 1, citing positive progress in on-going negotiations.
This might continue. Fed Chair Jerome Powell is due in the US Senate for the first day of semi-annual testimony. He may echo the noncommittal, neutral tone on display in minutes from January’s FOMC meeting. That clashed with the markets’ more dovish view, boosting the US Dollar. More of the same may also feed risk aversion as markets worry about higher tightening prospects amid a global slowdown.
POUND UP ON BREXIT DELAY HOPES, CARNEY COMMENTS DUE
The British Pound is on the upswing in early European trade, buoyed by reports that UK Prime Minister Theresa May is mulling postponing Brexit. Meanwhile, opposition Labour Party leader Jeremy Corbyn has agreed to support holding a new referendum on the EU/UK divorce. Sobering comments from BOE Governor Carney in testimony before Parliament’s Treasury committee might cool the rally however.
What are we trading? See the DailyFX team’s top trade ideas for 2019 and find out!
ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
** All times listed in GMT. See the full economic calendar here.
FX TRADING RESOURCES
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
- Join a free Q&A webinar and have your trading questions answered
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To contact Ilya, use the comments section below or @IlyaSpivak on Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.