Key Points

Bias: Risk neutral

Commentary

U.S. stocks opened firmer overnight and finished about flat after an ultra-dovish statement from Fed President Powell. Powell was quotes as saying “were not thinking of raising rates, were not even thinking about thinking about raising rates.” Despite this the NASDAQ still managed to close above 10,000 for the first time ever.

Currencies were largely quiet after the as-expected posture from the FOMC. The dovish comments from Fed’s Powell did hurt the Greenback a little, but most pairs are trading tight ranges. Sterling was the best performing currency as Brexit hopes continue to grow.

Oil rose again last night largely in line with the weaker USD. Gold eased slightly on position adjustment.

Bias

Expect markets to hold familiar ranges in Asia today. The data calendar is also light, with nothing major until tonight’s US PPI and Initial Claims.

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