This is what you need to know to trade today Wednesday, February 24:
Market mood is mixed after a turbulent Tuesday – Fed Chairman Powell reassured markets by promising support, which weighed on yields and the dollar. Bitcoin’s whiplash continues, as vaccines lag in Europe. The focus will be on another appearance by Powell and on the fiscal stimulus talks.
The Chairman of the Federal Reserve, Jerome Powell, told Congress that Prospects have improved, but there is still a long road to recovery. He reiterated that any increase in inflation will likely be temporary and that the Fed has tools to deal with it. On the fiscal stimulus, Powell said he doesn’t see how an explosion in spending would lead to higher inflation.
His words sent stocks rebounding from the abyss, with the S&P 500 closing higher on the day. Benchmark ten-year bond yields fell from 1.40% and pushed the dollar lower. Powell returns to Capitol Hill this Wednesday. Lael Brainard and Richard Clarida, both members of the Fed, will also speak.
Fiscal stimulus: Democrats are ready to bring President Joe Biden’s $ 1.9 trillion stimulus plan to the House vote on Friday, an important step forward.
The Bitcoin it’s changing hands around $ 50,000 after a whiplash earlier this week. The cryptocurrency’s decline from the highs diminished the fortunes of Tesla founder Elon Musk. Cathie Wood of Ark Investment Management noted that the drop to $ 46,000 is a healthy correction.
The GBP/USD it stands out with a rise above 1.42, driven by the weakness of the dollar and also by speculation that the Bank of England would raise rates sooner rather than later. BoE Governor Andrew Bailey and several of his colleagues will speak today. Furthermore, British media are reporting that the UK may exit the lockdown before the current end date of June 21.
The EUR/USD It has lagged behind its peers, partly due to prospects for extended lockdown measures in Germany and AstraZeneca’s announcement of another cut in delivery of vaccines to the old continent. The firm cut its supplies for the second quarter in half, from 180 million to 90 million doses.
The NZD / USD it advanced above 0.7350 after the Reserve Bank of New Zealand left its rates unchanged, as expected. Governor Adrian Orr noted that the kiwi would be higher if it weren’t for the actions of the RBNZ.
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