US Dollar lower, stocks higher on Powell comments

We had said economic data ahead of Wednesday’s Fed decision wasn’t going to mean all that much and this proved to be the case with all of the positive US dollar momentum from a solid round of the u.s. GDP data fizzling out after the Fed chair said the central bank wasn’t thinking of raising rates this triggered a round of broad-based profit taking on long dollar exposure with currencies running up across the board as a result stocks like the Powell comment as well and used it as fuel to extend the run with the S&P 500 making record highs yet again the run of dollars selling halted a sharp sell-off in the Canadian dollar.

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After the loonie had been falling apart in the aftermath of a Bank of Canada decision that produced a more dovish than expected communication early Thursday the Bank of Japan was out and it didn’t really produce any fireworks leaving policy on hold but Aussie and kiwi continued to run higher into Thursday with Aussie helped along by better economic data and Kiwi extending.

Its rally on impressive data of its own along with News Westpac had slashed calls for an RBNZ rate cut on the braves at front Boris Johnson won backing in Parliament for a December 12th election which means wait-and-see mode will keep on with no definitive clarity on the path forward until the results of the election is determined looking ahead Thursday’s calendar features German retail sales and ECB jingo speech eurozone growth eurozone inflation Canada GDP Canada producer prices US personal income and spending u.s. core PCE initial jobless claims and Chicago PMI.