Dollar falls, Stocks rise. Rates move lower (yield curve steepens with short end moving lower)
The Fed Chair had a dovish tilt with his prepared text and testimony. He did not walk back the thought of a rate cut at the next meeting. The market has the chance of a cut 100% and the chance of 50 bps up to about 22% at the July meeting.
The impact on the markets show:
- The USD moved lower. The dollar is the weakest currency on the day.
Looking at the changes, the dollar is off the session lows in the major currency pair, but still near the highs.
- Stocks were down in premarket trading. The prepared text reversed the market higher and the major indices all opened higher. However, the gains have retraceed from the highs and trades in the middle of the day's high to low trading range.
US yields move lower in the front end of the yield curver, but is higher in the longer part of the yield curve. A not so great 10 year auction is hurting the long end as well. Overall, the fall in yields have retraced some of those declines,
- Spot gold moved higher and trades up $13.81 at the end of the testimony at $1411.40. The low for the day reached $1389.96. THe high reached $1413.23
- WTI crude oil is up $2.19 or 3.79% and above the $60 level but the bid drawdown in weekly inventory data helped the price move higher
