Stocks at New Record, Dollar Plummeted, Aussie Turning Around
Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium didn’t disappoint. He did what the markets expected, affirming the openness for beginning tapering this year, without indicating the need for an imminent start. Just as Philadelphia Fed President Patrick Harker described, Powell laid out where the center of the FOMC is in terms of policy. US stocks cheered the speech with S&P 500 and NASDAQ closing at record highs.
In the currency markets, Dollar was sold off notably after Powell and end the week as the second worst performer. Yen was the weakest following rebound in major global yields, while Swiss Franc was third. On the other hand, commodity currencies closed as the strongest ones, led by New Zealand Dollar.
Development in Gold suggests that more downside in now in favor in the greenback. We’d like to see break of 1.1804 resistance in EUR/USD and 1.3785…