Nasdaq at record highs, dollar erases last week’s gains

It looks like the long-term trends will prevail in many assets, despite last week’s setback, with the USD being offered while US stocks keep roaring higher.

Yesterday’s Powell testimony was dovish, as widely expected. The central bankers are now rushing to defend their dovish bias, following the last week’s hawkish surprise at the FOMC meeting.

“We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances,” Powell said in a hearing before a US House of Representatives panel.

Therefore, the USD fell afterward, pushing the EURUS pair to 1.1950. Last week’s big rally is quickly unwinding. 

Stocks continued in their uptrends, and the Nasdaq 100 index rose above 14,300 USD for the first time. The SP500 index is close to its all-time highs, but the Dow Jones is lagging.

Later today, US new home sales will be released, with the pace slowing notably amid rapid price increases. Housing is getting increasingly unaffordable for the middle and low class. 

Additionally, the ECB President Christine Lagarde speaks at the Hertie School of Governance organized by the Jacques Delors Institute, possibly influencing the EURUSD pair. 

Source: https://www.axiory.com/market-news/nasdaq-at-record-highs-dollar-erases-last-week-s-gains