- U.S. stocks rise on Powell comments and positive news from Gilead
- Fed’s Powell vows a strong and protracted fight to offset Corona Virus
- U.S. GDP falls 4.8% in Q1
Bias: Risk on (tentatively)
U.S. stocks bounced nicely overnight, supported by comments from Fed President Powell vowing a strong and protracted fight to offset the Corona Virus fallout. Also supporting was a report from Gilead that its clinical trial for its Corona Virus drug met the study’s goals. The market largely shrugged of a 4.8% fall in U.S. GDP in Q1.
The Big Dollar was broadly weaker, but within tight ranges, as players continued to look for slightly higher risk plays. This saw buying in the Euro, Cable. USD/JPY help its tight recent range, while The AUD was slightly firmer.
Gold and oil prices were slightly firmer, supported by Powell’s comments but mostly dominated by position adjustment flows.
Today may be interesting in Asia, with players eyeing a slew of data and with prices building within tight recent ranges on currencies. The main data release is Chinese PMI, while Japanese Consumer Confidence and Housing Starts are also slated. Tonight sees Euro-zone GDP and CPI along with U.S. Chicago PMI.