FX Update: Fed’s Powell testimony, Trump impeachment hearings
In a speech yesterday, US President Trump offered few clues about the state of US-China trade deal negotiations, only promising more tariffs if the deal failed to go through. Today is an important day for signaling from the Powell Fed as he will testify before a Congressional committee. And it is a busy day indeed for the US Congress, as elsewhere the first Trump impeachment hearings are set for today.
FX Breakout Monitor: EUR wilts as USD pokes higher still
Momentum traders are still amidst their long walk in the desert as FX volatility levels poke around within reach of all time record lows. The euro is poking around at new local lows versus the US dollar and elsewhere, while the big dollar is taking a peek at upside break elsewhere as well.
FX Update: Bond yields a major driver ahead of Trump speech
Despite uncertainty over whether a US-China trade deal remains on course, complacency remains the name of the game as equities pull back higher and safe haven bonds wilt. But at what level do rising US long rates impact risk appetite and EM? The market awaits a speech from US President Trump later today that should included hints on the US trade stance.