The prepared text from Powell's testimony is more hawkish and that has the stocks lower, yields higher and the USD higher as well.
- Dow Industrial Average -200 points or -0.59%
- S&P index -37 points or -0.91%
- NASDAQ index -115 points were -1.0%
Looking at the US debt market, yields are higher in the short around:
- 2 year note 4.96% +6.8 basis points
- five year note 4.317% +4.9 basis points
- 10 year note 4.01% +2.0 basis points
- 30 year bond 3.929% +1.8 basis points
The USD is sharply higher:
EURUSD: The EURUSD has moved below both its 100 and 200 our moving averages at 1.0641 and 1.06144 respectively, and looks toward the swing area between 1.0576 and 1.0585 on the hourly chart below.. Traders will be watching the 200 hour moving average now as resistance. That level also corresponds with the broken trend line. Look for sellers to lean against that level on any corrective move higher.
GBPUSD: The GBPUSD has fallen below the floor area between 1.1914 and 1.19215. The price has also fallen below the 200 day moving average of 1.1912. That area will now be the close risk for the GBPUSD. Stay below keeps the sellers in firm control. The next key target comes against the swing low from January at 1.1840 (not shown).
USDJPY: The USDJPY has moved above it 100 day moving average at 136.531 and looks to test the high prices from last week between 136.91 and 137.097. Move above 137.097, and the 200 day moving average at 137.365 would be the next key target. The price of the USDJPY is not traded above its 200 day moving average since December 20. Close risk is now the 100 day moving average at 136.53.
