Collinsonfx Daily Market Commentary

Daily Market Commentary

The Federal Reserve Chairman, Jerome Powell, appeared before Congress overnight for confirmation hearings. Powell was much more forthright in his words, for future monetary policy, than he has been in his deeds over the past year. He expected inflation to ease as the supply chains normalised and that the Fed would not be afraid to hike rates further than projected, if inflation remained high. Markets remained calm and equities regained some confidence, while the surging US Bond Yields calmed. The US Dollar drifted, with the EUR regaining 1.1350, while the GBP broke back above 1.3600.

The softer reserve allowed the commodity currencies to rebound, with the AUD looking to regain 0.7200, while the NZD pushed back above 0.6750. Australian Retail Sales were stronger than expected, rising 7.3%, as the States remain open, despite surging omicron infection rates. Market focus remains on the important US CPI inflation rate, which will be released in overnight trade.

PLEASE NOTE THE VIEWS EXPRESSED IN THIS COMMENTARY ARE THOSE OF THE AUTHOR AND NOT COLLINSON & CO 

Paul Bettany

Collinson Forex

Collinson & Co

Mobile 0406-744-923

paul@collinsonfx.com