The US dollar is near the lows of the day and equity futures are at the highs, with S&PO 500 futures up 29 points.
The dollar has fallen 10-15 pips since the text of Federal Reserve Chairman Jerome Powell’s appearance in Congress was released. In it, he maintained the recent commentary from him and many other Fed officials. They continue to expect to cut rates this year but want to gain more confidence in inflation falling first.
That data-dependent approach underscores the market’s sensitivity to economic data. Today, ADP employment was slightly softer than expected at +140K versus the +150K consensus. On Friday, we get the non-farm payrolls report.
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