Asian Markets are trading slightly lower overnight as everyone waits for Jerome Powell’s testimony. Both the Hang Seng and Nikkei225 losing ground by 215 and 12 points respectively.
Futures markets are still pricing in a 25 basis points cut later this month whilst there is now no indication of anything further. Markets are trading in narrow ranges, lacking real direction but that should change later today. Investors and the markets are looking for a number of rate cuts throughout the remainder of this year. Anything but this outcome may send the markets into a tailspin.
As you would expect, the dollar continues to strengthen. Sterling continues to tread water above 1.2450.