Thursday, October 4 – Asia Session Recap
During the Asia-Pacific session, the market’s main focus remained on USD. This was due to positive US data in the earlier NY session and an upbeat tone from Fed Chair Powell early in the Asia-Pacific session.
Fed Chair Powell stated that we are a long way from neutral rates, rates are still accommodative, and they may raise rates past neutral.
Alongside strengthening USD, Powell’s comments weighed on the global risk tone as the idea of even higher rates spooked investors. As such, Asia equities are mostly lower with the Nikkei down 0.56%.
Regarding USD, EURUSD is now trading below 1.1500 and USDJPY firmly above 114.00.
For additional research, we’ve posted news articles from around the web below.
- Watch Fed Chairman Jerome Powell in a Q&A session
- Powell Says Fed May Lift Rates to Levels That Restrain Growth
- Powell says we’re ‘a long way’ from neutral on interest rates, indicating more hikes are coming
- Fed’s Powell sees ‘remarkably positive outlook’ for economy that may be ‘too good to be true’