Asian markets are ending today’s session mixed as the Hang Seng is currently down by 200 points whilst the Nikkei225 has added 15 points.
Jerome Powell will take Centre stage for the next three days, commenting on each of them, either in conference or during testimony. Markets will be looking for any change in stance. Every word will be scrutinized for a slight change in policy and markets will react in concert.
Rate cut hopes have reduced, virtually disappeared for a 50 basis point cut but Powell can turn this sentiment quickly. Personally I think his comments potentially will spook the markets further and possibly signal no rate cut at the end of the month. Preference therefore remains to trade the indices from the short side
Dollar strength continues to heap pressure on both sterling and the euro.