The wheels are coming off the risk trade in short order today.

I wouldn’t pin the price action on Powell but some might have been waiting for him to offer up something more dovish than ‘proceed carefully’.

I think this is more about the global macro landscape with China unravelling and increasing signs of weakness from the US consumer. Those concerns have been building along with commentary from US retailers this week.

Whatever the trigger, Treasury yields rose in the last 40 minutes and the dollar has risen with them. Stocks are slumping now with NVDA down 2.5% in a complete reversal of the early price action yesterday.

USD/JPY is trading at a new 2023 high.

This article was written by Adam Button at www.forexlive.com. MoneyMaker FX EA Trading Robot