11.07 - Powell hints on USD weaknesses; sends the currency into the selloff
Those who follow the markets closely enough might ask a very fair question – WHAT IS GOING ON TODAY? But if you follow the performance of the markets then you should know that yesterday was also a very important day for USD. A day that we have been waiting for days – Jerome Powell testimony in front of the Senate on the state of American economy.
And what has Mister Powell said that has influenced the performance of the markets so much? Well he hinted at the fact that USA are not strong enough to hold on the pressure from the trade war imposed on the world by Trump and that the USA might have to cut interest rates after 10 years of waiting. Of course such news wasn’t taken too kindly by traders who started fleeing to other segments of the markets and other assets almost momentarily.
This was felt by Asian market where major indices and shares felt a very big and very strong push. It is not to say that they were on the rise as it is. And this boost is one of the best things that could have happened to them.
This growth can be seen in other segments of the markets as well – euro and pound are seeing one of the biggest surges in weeks and yen finally has the chance to break out for real. That is the growth that we been hoping for. Although it comes in the time very unstable and very unclear for the greenback we can still ride the wave.
Oil and precious metals are surging – and why shouldn’t they? When are they going to have the same opportunity once again? And when are we going to see a growth similar to the one we are seeing right now? It might take months!
Here is what the greenback fall caused today:
Topix advanced 0.5 percent.
Kospi rose 1.1 percent.
Shanghai Composite added 0.1 percent.
Hang Seng from Hong Kong rose 1 percent.
S&P 500 futures grew 0.2 percent.
Dollar fell 0.3 percent against the basket of six major currencies following the same 0.3 percent loss experienced by the greenback yesterday.
Euro rose 0.2 percent - $1.1275.
Pound rose 0.3 percent - $1.2535.
Yen grew 0.5 percent – 107.93 per dollar.
Apple added 1 percent - $203.23.
Facebook rose 1.8 percent – $202.73.
Amazon increased 1.5 percent - $2017.41 per share.
Tesla grew 3.85 percent - $238.92.
WTI oil added 0.3 percent - $60.59 per barrel.
Brent rose 0.2 percent - $67.13 per barrel.
Gold increased 0.9 percent - $1424.9 per ounce.
Silver grew 0.55 percent - $15.31 per ounce.
Platinum added 0.05 percent – $827.03.