Well, Fed chair Powell’s anticipated remarks ended up being a non-event and now all eyes are focused on tomorrow’s US CPI data instead. That will make for a quiet period today with surely a lack of conviction across the board. The dollar remains in a tricky spot with EUR/USD and AUD/USD both threatening upside breaks, while the likes of USD/CAD and GBP/USD are also seeing the momentum starting to favour dollar sellers instead.
It’s all about the waiting now as broader markets are likely wanting to see the green light from inflation data before running with the theme that we saw mostly in November and December last year.
In the commodities space, gold continues to intrigue as price stays in the hunt of $1,900 but I would imagine positions being pared ahead of the key release tomorrow. But if we do see the recent price action be vindicated, there might not be much to really stop an extended upside push in gold above the figure level.
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