Powell Hawkish, but not enough Hawkish to intimidate Wall Street

  • Powell signs assess highs and lows, but the products remain stable.
  • Nasdaq extends recovery, international stocks also accumulate
  • After the fall of the dollar, the focus shifted to US CPI data

Paul is very sad about controlling inflation

Jerome Paul reiterated his co-workers’ message: High interest rates and low balance sheets at the Capital Hill Fed’s second confirmation hearing this week took another significant step towards policy normalization. With the ever-increasing number of federation officials not only pushing for higher prices, but also for slowing down the audit, Paul appears to be on the mend.

“While the O’Micron wave continues to disrupt trade and supply chains, Paul, who is confident of a recovery, warned that the economy” will no longer need a favorable policy “and that inflation could plummet.

This year, with at least three price increases, the federation does not look far off. However, this is a testament to the strength of the stock market on Tuesday, with the fourth quarter of the year showing no signs of slowing down.

Wall Street has been confirmed by Powell

Significantly, investors are predicting that inflation will hit higher in the middle of this year and therefore the federation should not make a stronger increase than currently predicted. Powell also refrained from giving the right time to pick it up, and the start of the paperwork and the markets may have signaled that he, like some more aggressive policymakers, should not rush.

Shares on Wall Street appear to have paved the way for a fair market after Monday’s dramatic Wipsows saw Nasdaq briefly enter the realm of correction. The Nasdaq Composite ended Tuesday’s session by 1.4%, while the S&P 500 rose 0.9%.

Asian and European stocks were in the Green Sea on Wednesday, although the future of the US e-mini was showing some weaknesses. There is growing optimism that the soft-spoken CPI numbers in the coming fiscal year and beyond China, have boosted PBOC’s hopes of further funding.

They consistently precede the most important US CPI.

In the end, however, the stability of the bond market is favored by the fact that after the Powell hearing, there was no increase in treasury production and the protests against international commodities seemed to have stopped.

Whether that stability remains, it depends on inflation in the United States. The headline CPI is expected to reach 7.0% y / y in December. A larger increase could reactivate the market.

Dollar flat, Luni shines in wide FX silence.

Prior to the inflation report, the dollar was trading in currencies. Greenback fell on Tuesday as most merchants expected Paul to be more falcon. However, Wednesday has been a more stable start for the FX market, with most major players having little or no change with their US counterparts.

The Canadian dollar is trading against the greenback near the two-month high, as recent strong gains in oil prices have strengthened Lunin. The euro, on the other hand, is approaching the top of the $ 1.1385 range and is gaining pressure from its own party, following a series of hurricanes by Boris Johnson with more than $ 1.36. Scandals.

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