Dollar moves lower. Stocks higher as markets react positively to Powell’s comments

The markets are reacting favorably to the initial comments from Fed’s Powell at his press conference. It Powell says that it would be unlikely that the next policy move will be a hike taking that risk out of the equation at least for now. :

The NASDAQ index is now up close to 1.13%. The Dow industrial average is also up 1.23% while the S&P index is up 0.84%.

Rates have also moved lower with the

• 2-year now down nine basis points at 4.956%.
• 10 year yield is down nine basis points at 4.595%

in the Forex market:

• EURUSD: The EURUSD has moved about the 100-day moving average 1.07018, tilting the technical passport to the upside. The next target is being tested between the swing area at 1.0722 – 1.07346. Above that is the 50% midpoint of the April trading range at 1.07425
• USDJPY: The USDJPY has moved down toward its 100-day moving average at 156.994. The low price has just reached 157.065. Prices also below the swing level at 157.232. That is now close risk for traders.
• GBPUSD: The GBPUSD has moved above its 100-day moving average at 1.25125, and next looks toward its 200-day moving average at 1.25519 and it to a bar moving average at 1.25656.

This article was written by Greg Michalowski at www.forexlive.com.