Here is what you need to know on Friday, April 9:
Markets continue cheering Fed’s Powell dovish approach, pushing the dollar down and gold up. Rising virus vases in Asia and growing concerns about AstraZeneca’s vaccines somewhat weigh on sentiment. Canadian job figures and updates on infrastructure are also eyed.
Rising infections, not rising inflation: Jerome Powell, Chair of the Federal Reserve, emphasized could concerns and slack in the labor market, dismissing inflation. He signaled that the Fed wants to see outcomes, not outlooks. His words emphasized similar messages from his colleagues and the bank’s meeting minutes.
The S&P 500 Index responded by hitting new highs, alongside global stocks. However, there are reports that some are betting that volatility will surge from its current depressed level of 17 to 40.
Gold has benefited from fresh interest, consolidating its gains above $1,750. Industrial metals also remain bid.
The US dollar has been recovering from the lows it hit after Powell’s remarks but remains on the back foot. EUR/USD is trading around 1.19 despite concerns that Europe’s vaccination will be further delayed by curbs on the usage of AstraZeneca’s jabs.
In Australia, New South Wales paused AZ’s vaccinations. South Korea and Japan have announced new curbs amid rising cases of COVID-19.
GBP/USD is under some pressure near 1.37 due to Brexit issues. Northern Ireland suffered the ninth night of unrest with clashes between unionists and loyalists, with the latter feeling betrayed by the Brexit accord.
Canada is expected to report an increase of roughly 100,000 jobs in March after 259,200 in February. USD/CAD has been trading below 1.26 ahead of the publication and amid stable petrol prices. WTI Crue Oil is hovering around $60.
Infrastructure: President Joe Biden continues working on garnering support for his infrastructure and tax plans, but the recent shift to gun control puts the topic somewhat off the White House’s agenda, and investors are also moving away.
Cryptocurrencies: Ripple’s XRP topped the $1 mark once again, standing out among digital assets. Bitcoin and Ethereum are edging up.
Bank to the Future: Interest rates return to market center stage