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German inflation on the agenda in Europe today

In the aftermath of the Fed yesterday, the dollar fell and risk trades rallied strongly after Powell & co. signaled that they might be getting close to slowing down the pace of rate hikes. He did not rule out a 75 bps rate hike in September but made clear that perhaps they can seal the deal by being less aggressive now that they reached neutral territory and that the economy is slowing down.

A more data-dependent approach means that markets will have to fill in the blanks themselves. And the first big data to look at will be the US Q2 GDP data later today. Powell said that he hasn’t seen the numbers yet but provided a caveat in saying that any initial figures tend to be revised (though can work in either direction).

The dollar is steadier today but is finding itself struggling against the yen as the Japanese currency is the top performer going into European morning trade. USD/JPY is down 0.8% to 135.45 with the low earlier touching 135.11, coming close to test the critical 135.00 level.

Looking ahead in Europe, German inflation will be a focal point with the North Rhine Westphalia report earlier here suggesting that we might see the figures come in hotter than expected.

0900 GMT – Eurozone July final consumer confidence
0900 GMT – Eurozone July economic, industrial, services confidence
1200 GMT – Germany July preliminary CPI figures

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

NASDAQ has its best day in over 2 years. Powell eases markets fears.

The major US stock indices have closed sharply higher:

  • Dow industrial average rose 434.44 points or 1.37% at 32196
  • S&P index rose 102.27 points or 2.61% at 4023.31
  • NASDAQ index rose 469.86 points or 4.06% at 12032.43
  • Russell 2000 rose 43.08 points or 2.39% at 1848.33

All major sectors of the S&P moved higher:

  • tech rose 4.29%
  • communication services rose 5.10%
  • consumer discretionary rose 3.85%
  • energy rose 2.21%

The weakest component was utilities which rose 0.10%. Healthcare rose 0.64% in consumer staples rose 0.7%

The NASDAQ index at its best year in over 2 years

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