Jerome Powell speaks twice this week
This Daily Digest will cover:
- 🎙 Jerome Powell speaks twice this week
- 📊 Data calendar light today but culminates in NFP on Friday
- 🪙 Crypto holds tight ranges post Silvergate decline
The markets were generally quiet yesterday as events later in the week took focus.
The relatively low GDP target set by China over the weekend has taken the wind out of the recovery story there for now and the main movers were energy and commodity markets which sagged in reaction. FX and Crypto have maintained their recent ranges with ease and focus is firmly on Non Farm Payrolls data on Friday which will give us a further glimpse into the state of the employment situation in the U.S.
Before that Jerome Powell does a fine bus impression, having been quiet for a while, he appears twice this week to testify before Congress and take questions. With the recent data prints showing inflation running hot it is hard to see him be anything except hawkish so short USD positions and long risk assets could be in for a rocky ride. That said, the mood remains positive in most asset classes with the USD generally at the low end of recent ranges and stocks holding onto Friday’s gains for now. Data matters more than words at the moment so whilst we will have volatility for a few days, it is Friday that counts to me.
Crypto markets continue to sulk in the corner like a naughty child following the sell off post Silvergate news last week. BTC at 22,400 and ETH at 1570 may not be as exciting as when they were pushing for new highs, but no damage has been done to the uptrend for now and it is a case for waiting for the dust to settle before the next attempt higher can be seen.
As always, good luck out there.