US equity future extend gains, US dollar softens

In markets, the first move is often the correct one.

I think that was the case with the FOMC yesterday. The market initially breathed a sigh of relief as Powell downplayed the chances of a rate hike. However later, the move in equities was erased and stock markets closed near the lows of the day.

There has been steady buying since then and the FX market has begun to take notice with S&P 500 futures up 42 points, or 0.8%. That’s a nice gain but I wouldn’t expect it to run too far with the looming risks around Friday’s non-farm payrolls report.

This article was written by Adam Button at www.forexlive.com.