Heads up: Fed chair Powell to speak again later today

In case you missed out on his remarks from yesterday:

Powell
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For today, he is scheduled to speak at around 1430 GMT (agenda says it is at 1500 GMT though) as he participates in a roundtable session in a Fed Listens event in Missouri. 

The event is hosted by the Kansas City Fed so Powell will be joined by Esther George in the discussion, where we will be hearing a range of economic issues, such as labor market conditions, local banking, community development challenges and other topics.

In any case, I wouldn’t expect Powell to deviate from his stance yesterday as he continues to keep all options on the table ahead of the next Fed meeting.

The FOMC meeting minutes release later today as well as US CPI data and US-China trade talks later this week will be more impactful for the dollar and risk in my view.

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Powell Can Stick to His First Draft: Traders Assess Jobs Report

© Reuters.  Powell Can Stick to His First Draft: Traders Assess Jobs Report © Reuters. Powell Can Stick to His First Draft: Traders Assess Jobs Report

(Bloomberg) — News the U.S. employment picture was decent if less robust than hoped in August kept equity futures elevated as traders saw the report as cementing more stimulus.

The economy added 130,000 jobs, trailing the average estimate, while the unemployment rate held at 3.7% and hourly earnings were higher than forecast. It came out four hours before Federal Reserve Chairman Jerome Powell speaks on monetary policy in Zurich. Here’s how strategists and traders reacted:

  • Dennis DeBusschere, head of portfolio strategy, Evercore ISI.

This is bullish — keeps aggressive Fed (Powell is not rewriting his speech at 12:30 today on this number). Rates should be sideways and curve should steepen. It’s positive for equities as the report speaks to longer expansion. It’s positive for the same things that have worked (tech). Cyclicals fine on the day if risk assets move up, which they should. Given all the other consumer/employment readings have been strong, people will likely discount the headline miss — especially given the huge jump in household employment.

  • Candice Bangsund, portfolio manager, Fiera Capital.

The headline number was a mixed bag — something for both the hawks and the doves. What was encouraging is the jump in hourly earnings, particularly for inflation backdrop. We’re likely to see another insurance cut in September and it’s largely priced in. It may be a bit of a hawkish cut in that the Fed will signal in that it’s not the beginning of a easing cycle and going forward they’ll be in a wait and see mode. The numbers in the U.S. We’ve been seeing isn’t consistent with a) the recession and b) four rate cuts the market is pricing it.

  • Bruce Bittles, chief investment strategist, Robert W. Baird.

The print almost guarantees that the Fed is going to cut rates by 25 points. Yesterday’s ADP (NASDAQ:) was higher than expected and if today’s jobs numbers were higher, there could be a lot of questions about whether the Fed was going to cut rates this month. The print doesn’t change anything, it solidifies the fact that the Fed is going to lower rates. Powell speaks later today. The Fed has pretty well signaled its stance on interest rates, Powell may confirm that today or make a little stronger statement.

  • Tony Bedikian, head of global markets, Citizens Bank.

Today’s jobs report shows the resiliency of the United States economy despite several global headwinds. The on-again, off-again U.S.-China trade talks continue to roil markets and, in some ways, are mirroring the on-again, off-again Brexit debate. Both issues are providing market participants with more theater than substance while the U.S. consumer tunes them out, keeps spending and keeps the U.S. economic fundamentals on track.

  • JJ Kinahan, chief market strategist, TD Ameritrade.

We’re light on the number. August is always a strange report anyway. The reason I say that is because you have some of the summer jobs that are sort of rolling off as kids go back to school or the resorts or whatever that may be open in the summer that aren’t the rest of the year. You also have the anomaly of the government hiring 25,000 workers for the census. You normally don’t see that.

  • Ilya Feygin, senior strategist, WallachBeth Capital LLC.

The weak payrolls and higher hourly earnings are slightly negative for equities because they force us to deal with a slightly weaker economy but do not change the central bank rate path at all in our view. We would expect an eventual downtick in S&P futures to the 2,970 area where they found support last night and then the 2,950/2,954 area.

  • Marvin Loh, global macro strategist, State Street (NYSE:).

It certainly shows that the jobs market ultimately is slowing but it isn’t rapidly compressing yet at this point. Past mid-cycle, more towards late-cycle but it definitely doesn’t seem that it’s a late, late cycle yet. This one’s got a little bit in it for everybody.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forexlive Americas FX new wrap: Decent jobs data keeps Fed’s Powell consistent

Forex news for NY trading on September 6, 2019

In other markets, the end of the day snapshot is showing:

  • Spot gold, fell $ -12.42 or -0.82% at $ 1506.56
  • WTI crude oil futures are up $ 0.29 or 0.52% at $ 56.59

In the US stock market today, the major indices close mixed with the S&P up 0.09%, the Dow industrial average up 0.26%, but the NASDAQ composite index fell -0.17%   European indices also closed with mixed results, with the German Dax up 0.54%, whiile Spains Ibex, Italy’s FTSE MIB and Portugal’s PSI 20 all close with modest declines.  Below is a look at the percentage high low and close changes for the major North American and European stock indices for the day.

Major stock indices around the world closed with mixed results In the US debt market, 30 year yields get back some of the gains from yesterday (-3.0 basis points), but 2,5 and 10 year yields are ending the session little changed:
US yields are ending mostly unchanged

In the European debt market, benchmark yields fell sharply once again, with UK yields down -9.4 basis points, German yields fell -4.4 basis points.

European yields fell sharply

Next week on Thursday, the ECB is expected to cut the deposit facility rate by 10 basis points to -0.50%. There is a 45% chance of a 20 basis point cut.

Today, was employment day in the US and in Canada. In the US nonfarm payroll rose by 130K. That was lower than the 160K estimate and the ADP estimate of 195K.  Revisions shed  -20K from the prior months.  The unemployment rate remained steady at 3.7%. The participation rate rose by 65.8% from 65.6%.  Average hourly earnings YoY came in better than expected at 3.2% versus 3.0% estimate (3.3% last month).   The data helped to send the US dollar mostly lower on the day. However, it did rise versus the GBP (there will be ups and downs on Brexit) and the CHF.  Below are the rankings of the strongest verse weakest for the major currencies today.

The snapshot of the winners and losers for the major currencies today

Later in the day, Fed’s Powell was in position to give the final word before the blackout period for Fed officials before the September 18 decision day.  As Adam pointed out, the key takeaways from the Fed chair was:

  1. No recession
  2. Moderate growth, but does not want to see inflation slipping
  3. A more tame tone on inflation and how inflation is especially well anchored
  4. There remain geopolitical risks and data risks
  5. Exhibited humility in the Fed’s experience in working through trade disputes
  6. He gave no pushback against a continued modest decline in rates.

So we can expect a 25 basis point cut in September, but 50 basis points is being priced out of the market once again. This week the expectations one is highs around 27% but is ending the week at 7.4% for a 50 basis point cut.

For the trading week, the AUD was the strongest of the majors. The AUDUSD was higher each of the last 4 trading days after a run to test the lows on Tuesday fell short.  

The NZD was right behind the AUD as the second strongest currency. It rose each day this week. The GBP also rose this week vs most of the major currencies. The biggest loser this week was the JPY and the USD. Below are the rankings of the major currencies for the week.

The weekly changes for the major currencies.

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Stocks: Jobs Report, Fed’s Powell Help Boost S&P 500

© Reuters.  © Reuters.

Investing.com – Stocks moved mostly higher on Friday, thanks in part to a decent jobs report and Federal Reserve Chairman Jerome Powell’s continued assurance the central bank stands ready to support the economic expansion.

The rose 0.1%, with the up 0.26%. The slipped to a small loss at the end of the day because of weakness in Amazon.com (NASDAQ:), Microsoft (NASDAQ:) and Apple (NASDAQ:).

Plus, White House Economic Advisor Larry Kudlow suggested it may take some time to get a trade deal with China. Tech stocks are heavily exposed to China. Stocks had soared Wednesday and Thursday on news that U.S. and Chinese negotiators expect to meet next month in Washington, D.C.

The major averages finished higher for a second straight week. The S&P 500 was up 1.8% on the week. The Dow added 1.5% and the Nasdaq was up 1.76%. A week ago, the S&P 500 was up 2.8%, with the Dow up 3% and the Nasdaq up 2.7%.

The August showed payroll employment added 130,000 jobs in August, less than expected, and the U.S. held at 3.7%. The employment figure would have been lower except for 25,000 workers put on the government payroll to prepare for the 2020 census. Payroll estimates for June and July were revised lower.

But the report did not suggest a recession was in the offing.

Indeed, Fed Chairman Powell, speaking in Switzerland, said the economy is healthy and not in danger of falling into a recession. His remarks followed the usual tweets from President Trump calling for deep rate cuts when the Fed’s Federal Open Market Committee meets Sept. 17-18. The central bank is expected to cut its key federal funds rate by a quarter percentage point – not as much as the president wants.

Telecom, energy, materials and staples stocks led the market. Costco Wholesale (NASDAQ:), Home Depot (NYSE:) and Target Corporation (NYSE:) all hit 52-week highs.

Cyber security company Symantec (NASDAQ:) was up 4.5% after The Wall Street Journal reported that two private companies (Permira and Advent International) had approached the company about taking it private at $ 26 to $ 27 a share, valuing the company at about $ 16 billion. Symantec already has a deal to sell its enterprise business to Broadcom (NASDAQ:) for $ 10.7 billion and that deal is near to being closed.

And pharmaceutical company Mallinckrodt (NYSE:) jumped 17.6% after announcing it will pay $ 24 million in cash to settle opioid-related cases in two Ohio counties.

Intel (NASDAQ:), Home Depot (NYSE:) and Exxon Mobil (NYSE:) led the , with Microsoft (NASDAQ:), Walmart (NYSE:) and American Express (NYSE:) the laggards.

Energy shares moved as crude moved up 22 cents to $ 56.52 a barrel, ending the week up 2.6%. crude rose 59 cents to $ 61.54 and gained nearly 3.9% this week. moved lower, with futures in New York, closing at $ 1,515.50 an ounce, down $ 10.

Symantec (NASDAQ:), over-the-counter drug company Perrigo (NYSE:), Alexion Pharmaceuticals (NASDAQ:) and Tapestry (NYSE:), owner of the Coach and Kate Spade businesses, were among the top performers on Friday.

Advanced Micro Devices (NASDAQ:), Monster Beverage (NASDAQ:), electric utility WEC Energy Group (NYSE:) and oil-and-gas company TechnipFMC (NYSE:) were among the S&P 500 laggards.

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Forex – U.S. Dollar Flat as Powell Promises to ‘Sustain’ Economic Expansion 

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was flat on Friday after Federal Reserve Chairman Jerome said the central bank would keep an eye on the economy and act as needed, but failed to give any new guidance on interest rates.

“We will act as appropriate to sustain the expansion,” Powell said in prepared remarks at the Fed’s Jackson Hole, Wyom. summit. The economy is in a “favorable place” he said, but the trade war puts it in a “complex, turbulent” situation. The central bank is at an unprecedented place as it tries to set monetary policy to help the economy overcome the tensions caused by the U.S.-China trade war.

The slowdown has been visible for months in China, Japan and Europe, and is just starting to reach U.S. manufacturing with the of activity dropping below 50 for the first time in nearly 10 years in August.

Still, domestic economic strength continues, with inflation nearing 2% and and the job market at historically strong levels.

Powell seemed to push back against pressure to cut rates aggressively. U.S. President Donald Trump has called for a full percentage point cut and markets expect the central bank to keep easing its monetary policy.

The , which measures the greenback’s strength against a basket of six major currencies, inched up 0.1% to 98.132 as of 10:15 AM ET (14:15 GMT).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Trump Wants the Fed to Weaken the Dollar. Powell Says That’s Not His Job

© Bloomberg. Jerome Powell in New York on June 25. Photographer: Cate Dingley/Bloomberg © Bloomberg. Jerome Powell in New York on June 25. Photographer: Cate Dingley/Bloomberg

(Bloomberg) — President Donald Trump wants a weaker dollar to help boost exports, and is counting on the Federal Reserve to help make that happen. But the central bank’s chairman, Jerome Powell, has made clear it’s not his job.

It’s a new twist in the broader pressure campaign the president has brought to bear on Powell to cut interest rates to energize the stock market and fuel growth.

Trump’s focus on the dollar surfaced last week after the European Central Bank said it might ease policy, prompting the euro to drop against the dollar. Trump seized on the move to say on June 18 that the Fed’s failure to lower rates was putting U.S. exporters at a competitive disadvantage. He later mused on June 26 he’d rather have ECB President Mario Draghi running the Fed.

Powell, once again, is finding himself on the defensive, trying to shield the Fed from political influence. He deflected Trump’s calls back at the administration.

“The Treasury Department — the administration — is responsible for exchange rate policy — full stop,” Powell said June 25 in response to a question from the audience after a speech in New York. “We don’t comment on the level of the dollar. We certainly don’t target the level of the dollar. We target domestic economic and financial conditions as other central banks do.”

Trump has explored options for removing or demoting Powell over the Fed’s interest rate decisions, which the president says have hampered growth. And the currency comments offer yet another point of tension between the world’s most powerful leader and its most influential central banker.

Last week, Trump accused both Europe and China of weakening their currencies to gain a competitive advantage. Some Wall Street banks are questioning whether the U.S. might intervene in currency markets.

“Make no mistake about it, what Draghi and other central banks are doing is the same as what China is doing — weakening their currencies,” said Dan DiMicco, who was an adviser to Trump’s campaign and presidential transition and now sits on an administration trade advisory committee.

The Trump administration has from the start deviated from a 20-year-old policy that a strong dollar was in the nation’s best interest. Treasury Secretary Steven Mnuchin said in 2017 that an “excessively strong dollar” could have negative effects on the American economy, and Trump has made similar comments since taking office.

“The repeated, intense comments by the president lead me to believe that we’re no longer pursuing a strong dollar policy,” said Nathan Sheets, chief economist for PGIM Fixed Income and a former Treasury official from the Obama administration. “This is a distinct, new chapter in U.S. currency management and strategy.

The strong-dollar mantra was developed by then-Treasury Secretary Robert Rubin in 1995. Underpinning it is the view that a robust currency reflects a healthy economy and bolsters foreign demand for U.S. debt by reducing the prospect of currency losses. While a stronger dollar helps American consumers by lowering the cost of imports, it also compounds manufacturers’ struggles by making exports less competitive.

Trump has an unlikely supporter in wanting a weaker dollar: Senator Elizabeth Warren, the Massachusetts Democrat who’s running for president. She proposes “actively managing” the dollar to counter foreign investors and central banks’ moves.

Trump and Warren’s ideas “very much could trigger a currency war,” said Fred Bergsten, an economist and author of “The Dollar’s Dilemma.”

But those who advocate that a weaker dollar is better for the U.S. say that former President Ronald Reagan’s administration was able to do it in the 1980s without destroying faith in the greenback.

In 1985, the U.S. worked with five countries, including Germany and Japan, to weaken the dollar in what was called the Plaza Accord. But such a deal is unlikely under the Trump administration, a senior White House official said.

“Our standing internationally is so weak and incoherent that the U.S. can’t pull something like this off,” said Steve Hanke, an economist at Johns Hopkins University.

Yet Trump believes that countries manipulate their exchange-rate through monetary policy, said the official, which is why the president is turning to the Fed for help.

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For Fed’s Powell, a gap with markets and Trump may need explaining

© Reuters. U.S. President Donald Trump gestures with Jerome Powell, his nominee to become chairman of the U.S. Federal Reserve at the White House in Washington © Reuters. U.S. President Donald Trump gestures with Jerome Powell, his nominee to become chairman of the U.S. Federal Reserve at the White House in Washington

By Howard Schneider and Ann Saphir

WASHINGTON/SAN FRANCISCO – (Reuters) – Bond investors expect an aggressive set of U.S. interest rate cuts this year, and a voluble president pines for the “old days” when his predecessors bullied central bankers to get their way.

If Federal Reserve Chairman Jerome Powell had a complicated task last year in calling an early halt to further Fed rate hikes, his mission in a Wednesday press conference may be even trickier: Thread the needle between growing expectations that lower rates are coming soon and economic data that looks reasonably healthy with rates just where they are.

Failing to pull it off could trigger the same sort of volatility and tightening of financial conditions witnessed in December, when Powell’s press conference remarks were interpreted as overly hawkish and in part responsible for an 8% drop in the over the next few days.

At the extreme, that sort of volatility could feed into the real economy and make the Fed’s job in coming weeks even more complicated.

“Powell will have to do a lot of tap dancing,” Bank of America Merrill Lynch (NYSE:) economists wrote Friday in outlining how the Fed will need to account for expected slower U.S. growth, weak inflation and trade risks, without making it seem as if a serious downturn is in the offing.

“This is a Fed that wants to insure that the recovery will continue,” they said. “The goal will be to talk about the need to ease policy but underscore that a recession is not around the corner.”

The Fed begins its two-day policy meeting on Tuesday, and will issue a new statement and economic projections at 2 p.m. (1800 GMT) on Wednesday. Powell’s press conference is scheduled to begin Wednesday at 2:30 p.m. (1830 GMT)

The central bank is expected to leave its benchmark overnight policy rate unchanged at its current range of between 2.25% and 2.5%. The federal funds rate has been at that level since December after a three-year cycle of monetary policy tightening that began slowly but ended with roughly quarterly rate hikes over 2017 and 2018.

A ‘DARKENED’ OUTLOOK?

The mood has clearly shifted since the Fed last met in early May, in part because of trade policy choices made by President Donald Trump and which the president has demanded be offset with looser monetary policy.

But it is unclear by how much. One Federal Reserve regional bank president has referred to the outlook as “darkened,” and another has called for lower rates “soon.” Powell in his most recent public comments dropped the use of the word “patient” in referring to the Fed’s posture when it comes to deciding on the next rate move.

That suggested to many analysts that the word will disappear from the policy statement as well. In May that 279-word missive said the Fed “will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate.”

But an absence of patience doesn’t mean the central bank is on a hair trigger. The focus on Powell will center around how he describes the Fed’s sensitivity to upcoming data, how seriously it views the risks of a widening trade war, and whether it still sees weak inflation as likely “transitory,” as he described it in May.

A LITTLE ‘FEDSPLAINING’?

Despite his December misstep, Powell has been given generally good marks by Wall Street investors for his ability to communicate policy.

His immediate predecessors had their own miscues.

Former chairman Ben Bernanke triggered weeks of global bond market volatility with his 2013 comments about the Fed’s plan to reduce its bond purchases. And former chair Janet Yellen in 2015 had to navigate the difficulties of the first interest rate increase since the 2007 to 2009 financial crisis.

But Powell this week may have a pronounced information gap to fill. As of March, 11 of 17 policymakers felt that rates at year-end would be unchanged from today, and the other six saw them as likely a bit higher.

The expected performance of the economy has not changed that much since then. Even if Trump’s trade policies have been hard to predict, Fed officials say the economic consequences could just as easily cavort to the upside if, for example, an upcoming meeting of the Group of 20 nations ends with any hint of progress in U.S.-China trade negotiations.

At this point, as economists at Goldman Sachs (NYSE:) wrote over the weekend, the “hurdle” for the Fed to cut rates “is likely to be higher than widely believed,” with the economy and markets either healthier or more aligned with Fed policy than was the case in the 1990s when the Fed used preemptive “insurance” rate cuts to encourage continued economic growth.

If Fed officials don’t collectively push their rate view down, as markets expect and the White House demands, it will be up to Powell to explain why.

(Graphic: Fed communications ratings – https://tmsnrt.rs/31DehYx)

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Powell: Increase labor force participation a high priority

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Forexlive Americas FX new wrap: Robust job gains and dovish Powell send stocks higher and the dollar lower

Forex news for NY trading on January 4, 2018

In other markets today:

  • Spot gold fell $ -9.17 or -0.71% at $ 1285.13
  • WTI crude oil futures rose $ 1.19 or 2.55% at $ 48.29.  The high for the day extended up to $ 49.22. That was up nearly 4% on the day, before coming back lower. The inventory data showed a smaller drawdown than expected at 7K vs -3000K expected.
  • Bitcoin on Coinbase is closing up $ 30 and $ 3825. 

In the European and US stock markets today, the major indices all enjoyed solid gains led by the NASDAQ composite index which rose 4.26%. In Europe, the German DAX and the Italian FTSE MIB each rose by 3.37%. Below are the % change ranges and ending % gains for the major indices.

For the 1st week of the calendar year, the major indices did ok as well (sure beat December). Only the Japan Nikkei was negative.  
In the US and European debt market, yields shot higher on the back of increased economic optimism following the much better than expected NFP.

The shorter end of the US curve rose the most as the strong jobs data could not be ignored and markets priced in a hike probability.

European yield were also higher on economic optimism spurred from higher stock prices.


The market is now pricing in a 4.7% hike probability by the end of the year. That was a 0.0% earlier this week. The cut probability by December is down to 27.4% from around 40% earlier this week.
The markets today were heavily influenced by a stronger jobs report.  Non-farm payroll jobs rose by 312K vs estimates of 184K. As if that wasn’t strong enough the prior months were revised up 58K.  Wages were also stronger and 0.4% versus 0.3% expected MoM. The YoY rose by 3.2% vs 3.0%.  The unemployment rate did take up 3.9% versus 3.7% expected. However, that was on the back of more workers entering the labor force.  The participation rate rose to 63.1% from 62.9% last month. Overall it was a strong report. 

The dollar rose in response to the report with the EURUSD falling from 1.1384 to a low at 1.1344.  The USDJPY rose from 108.08 to a high of 108.58.  The stock market, which was already higher on US/China trade hopes, moved even higher (Dow was up about 415 points, the Nasdaq was up 148 points, and the S&P was up about 46 points).

Then came a unique round table with the Fed Chair Powell, joined by ex Fed Chairs Yellen and Bernanke.   The market was more concerned with Powell comments. Specifically, it wanted to  see if he stepped back comments made in December which discounted the global risk concerns and said the QE taper would be on auto-pilot.  

He did end step back by saying in his early comments that “Fed IS listening carefully to the markets risk concerns” and added, “If needed, the Fed would change balance sheet runoff policy”. Both of those statements, were step-backs from his December comments. 

The dollars rise started to be reversed. The stock market also moved even further to the upside.  By the time the roundtable was over, the S&P tacked on 24 points additional points to 2519, the Nasdaq added 90 points to 6701, and the Dow added 217 points to 23318.

In the forex market, the EURUSD rose 53 pips to 1.1407, and the GBPUSD 95 points to 1.2722. 

For the rest of the day, that trends continued in the stocks with the S&P ending at 2531, up 84 points. The Nasdaq at 6738, up 275 points, and the Dow at 23433 up 746 points. 

In the forex market, the EURUSD stayed steady but near the highs. The GBPUSD did extend, reaching a high of 1.2745 before settling near the 1.2722 level toward the close.

Overall, the markets end with a Goldilocks feeling.  Not only is job growth still strong, but the Fed Chair seems to be a little less hawkish and understanding to the global risks.

BUT…not is all rosy

The government remains shut in the US with Trump and the Dems digging in their heels regarding funding for the border wall.

On January 7 and 8th a China delegate will be in Washington to talk about a trade deal.  The question of how to solve and police the IP issue and increase trade when the US consumer demands from overseas is not an easy solution.  Apples warning that rocked stocks on Thursday is also in the back of traders minds.  Is it just Apple, or is it systematic with the environment now led by slower China growth with or without a trade deal.  

We may not be totally out of the woods yet (or any time soon).

Have a great weekend. 

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Forex – Dollar Struggles as Powell Says He is Prepared to Change Policy ‘Quickly’

© Reuters.  © Reuters.

Investing.com – The U.S. dollar struggled for direction on Friday as Federal Reserve Chairman Jerome Powell said he would change the balance sheet if needed.

Powell, who was speaking at a Brookings Institution event along with Janet Yellen and Ben Bernanke, said that the Fed would act “quickly” if market concerns outweigh the strong economic data.

“We will be prepared to adjust policy quickly and flexibly should that be needed,” he said.

Powell also noted that despite trade tensions weighing on Chinese consumers, he expects China and other emerging markets to “remain consistent” with the rest of the growth in the world.

released earlier in the session increased the chance that the Federal Reserve will raise rates next year.

The , which measures the greenback’s strength against a basket of six major currencies, slipped 0.11% to 95.77. The dollar was higher against the yen, with rising 0.6% to 108.31.

Meanwhile, the was unchanged at 1.1401 due to the higher dollar and disappointing eurozone data. Eurozone consumer prices rose at a slower-than-expected pace in December, increasing expectations that the European Central Bank will keep interest rates unchanged.

Sterling was higher as the the services sector accelerated in December. Still, the economy is losing momentum ahead of the UK’s departure from the European Union. increased 0.44% to 1.2686.

fell 0.7% to 1.3387 while rose 0.5% to 0.6724 and jumped 1.26% to 0.7091.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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