- Balanced Future View Gives Life to Euro
- Sterling Also Forges Higher Despite Case Numbers
- Markets Continue to Jump Higher on News
It has been as positive an end to the week in the forex market as could have been expected. Both the Pound and Euro had endured a torrid time against a rampant Dollar in recent weeks. This has been somewhat turned around today with positivity reinjected into currency markets despite a mixed but balanced message from Jackson Hole. Wall Street too has felt the benefits with tapering finally mentioned. Positive numbers are seen across the board in the equities market.
Powell Remarks Taken as Well-Balanced
Friday was the day that most watchers and those forex trading the market were waiting for. The remarks of Fed Chief Jerome Powell being closely watched as the Jackon Hole Symposium draws to a close. They were in keeping with his previous stance for the most part. Measured and positive in many areas, but also acknowledging the need for continued support. That is one thing that traders have not been short of from the Fed through the course of this pandemic.
Although case numbers are still a cause for concern as they tick upward in the US and around the world, the general feeling and tone were that the US is doing well. Specific reference was made to the progress in employment. After all, there were more than 1 million workers hired in July alone. He has also stayed firm in not responding to “temporary moves in inflation”.
Major Currencies See Positive Side
Forex brokers have quickly been able to note the positive response of traders to Powell’s comments. The Euro had been languishing throughout the week but has come alive today with positivity and risen back toward 1.18 having been at yearly lows earlier in the week. The Pound has bounced back strongly as well, all taking advantage of the same sentiment.
Earlier today Sterling had been on the back foot during the European session. Following the comments from Powell though, it has bounced back well. This is despite ongoing uncertainty over Brexit issues domestically, and rumor that the UK could be set to reimpose more restrictions as the number of virus cases moves up. The Pound has also been dealing with some pressure from the Afghan withdrawal situation.
Wall Street Moves to Further Records
The fact that Jerome Powell sees tapering as a possibility by the end of the year, and has now voiced this feeling, appears to have removed any lingering clouds from Wall Street. Though the news may have already been priced in, today’s comments have worked only to lift the markets further across the board.
The Dow Jones added an extra 200 points, while the S&P 500 reached new records again in the wake of the comments. Traders on the street have continued to take the positive side of the news as they have done throughout much of the pandemic.