There’s a good afternoon flip in threat sentiment unfolding. The S&P 500 is now up 33 factors to 5771 after falling as little as 5666. That is a +100 flip within the index from the lows at midday ET.
I did not see something notably notable from Powell as he remained in a ‘wait-and-see’ mode. If something, he did not sound overly frightened about rising inflation expectations or tariff inflation. Nonetheless, pricing for a charge lower in Might has come down right this moment to 36% from as excessive as 60% earlier within the week and near 50% yesterday.
Yields are rising with US 2s up 5.1 bps to 4.01%. In flip, USD/JPY is now larger on the session, erasing earlier losses. EUR/USD is up almost 100 pips on the day as effectively.
On the USD/JPY chart, there’s something of a double backside.
