The dollar is trading more mixed but overall little changed against the major currencies still, as broader market sentiment remains rather cautious to start European morning trade. All eyes are on the upcoming remarks by Fed chair Powell later today, but are market players waiting on something that might not even deliver anything?
As mentioned earlier, Powell will be speaking in a panel discussion on "Central bank independence and the mandate – evolving views". The discussion topic doesn't exactly offer up much opportunities to touch on policy so he may not even deliver anything significant today.
However, as always, it is better to be prepared than to be caught off guard and that is precisely how markets are feeling right now. The fear is that Powell might deliver some added hawkish remarks again so the absence of such an event might give risk trades some optimism once we get past that.
That said, with the US CPI data coming up on Thursday, there isn't much time to really be chasing any firm convictions yet.
