A double shot of hawkishness from Powell hits appetite! | MarketTalk: What’s up today? | Swissquote

Show notes

Investors got a double shot of hawkishness from Federal Reserve (Fed) Chair Jerome Powell’s semi-annual testimony before the US Senate yesterday.
Powell’s comments sent the rate hike expectations significantly up and wreaked havoc across the US treasury and equity markets and the US dollar.
Moving forward, the next few data points will be VERY important in cementing the expectation of a 50bp hike at the March 21-22 FOMC meeting.
Today, the ADP report and job openings data. JOLTS data would better soften this month, after last month’s booming figure of 11 mio.
On Friday, February jobs report will be released. We’d better see an easing here as well after last month’s blowout half-a-million NFP read.
Finally, the latest CPI update is due next Tuesday. And again, it’d better head sufficiently lower after last month’s disinflation disillusion.
If the fresh data doesn’t go where the Fed wants to see them, bigger rate hikes will be on the menu, and hope of soft-landing and easy disinflation could fade away.
And with all the hawks in the air, the US dollar went straight up yesterday and there is no reason to bet on a softer US dollar for the next couple of days. The dollar will likely consolidate and extend gains against most majors.
Bank of Canada (BoC) is expected to keep the rates unchanged at today’s monetary policy meeting.
Listen to find out more!