I don’t think that Powell delivered anything that changed the state of play. The upcoming meeting was already a done deal and it’s all about data after that. Yes, the jump in long-end yields is effective tightening an the Fed is taking that into account but the long end is running, at least in part, due to a stronger economy.
In any case, the intraday Nasdaq chart carved out something of a double top and US 10s are still a shade away from 5%. I can’t see real money stepping into stocks or bonds until we see 5% and a ground invasion in Gaza.
The latest from the Middle East is from ABC, which reports that the Israeli military received the green light to enter the Gaza strip whenever it’s ready, citing a member of the country’s security council.
This article was written by Adam Button at www.forexlive.com. Source