What you need to know on Friday, March 5:
The US dollar soared as US Treasury yields hit new one-year highs on the words of Federal Reserve Director Jerome Powell. As he repeated on several occasions, he pointed out that they are “on a low path” from their goals. On rates, he said the outlook is turning more positive, but noted that “sustained” progress toward Fed targets is needed for policymakers to change current monetary policy. When asked about the recent streak in yields, Powell said they would be concerned about “messy market conditions” but repeated that rates will not go up until inflation exceeds 2% for some time.
The yield on the benchmark 10-year Treasury bond stands at 1.55% at the end of the day. Wall Street crashed, with all three major indices losing more than 2% at some point, albeit rebounding somewhat before the close.
The EUR / USD pair fell to the 1.1960 zone, approaching the February low of 1.1951. GBP / USD struggles around 1.3900.
Commodity-linked currencies lost ground to an even lesser extent. Despite spot gold falling below 1,700, AUD / USD remained above 0.7700, helped by stocks rebounding lower.
USD / CAD traded within familiar levels as the dollar’s momentum was partially offset by strong oil. Black gold soared to new one-year highs as OPEC + is reportedly close to agreeing to leave production unchanged in April. WTI reached $ 64.83 a barrel, while Brent gained more than 4.5%.
The USD / JPY pair is trading near 108.00, ignoring Wall Street and tracking returns.
The focus now shifts to US non-farm payrolls this Friday.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
