The dovish interpretation was also obvious in 10Y yields which slumped to session lows…
…and the dollar, which likewise slide to Friday’s lows, with Powell refusing to give a firm timeline to the taper.
And with the dollar sliding, gold is surging pushing the yellow metal above $1,800…
… while bitcoin and cryptos have spiked to new session highs.
Overall, Powell’s remarks were just what the market wanted – nothing too hawkish, or too dovish. Indeed, with stocks hitting all time high, they were just right. Or, as Renaissance Macro summarizes…
Sometimes you don’t really need to read a Fed speech to know what is in it. Upon the news, stocks are up. Yields are down. The dollar is weaker. Corporate credit has tightened. This is the market telling you Powell was dovish, on net.
— RenMac: Renaissance Macro Research (@RenMacLLC) August 27, 2021
Fri, 08/27/2021 – 10:20
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Author: Tyler Durden