The risk-off is in full swing following FOMC Jerome Powell speech, who mentioned that they are planning to get interest rates “expeditiously” to neutral. Powell acknowledged that 50 basis points rate hikes will be on the table at the upcoming meetings. US yields are again ticking higher/US notes lower while the USD is up sharply across the board. We see commodity currencies acting very weak as well, so it appears there is more weakness ahead, especially for next week if the stock will remains bearish through the US session today. Keep in mind that daily and weekly closing prices are the most important prices, and give us a lot of important indications for the upcoming week.
EURUSD is also down, despite the fact that ECB policymakers said they are ready to hike the policy rate as early as July. However, there is still a big gap between the policy of US and FED CB so pair remains in a downtrend and it may retest 1.0700 area as the recent rally in three waves stopped at 1.0935 resistance.
However, big wedge on the EURUSD may indicate a potential limited weakness in upcoming weeks, but we will need more aggressive and hawkish ECB tone for a bounce.
