Forexlive Americas FX News: Fed Waller Gives Market Momentum By Week End


There was little economic data today, but there was one last Fedspeak to round out the week. It would also be the last opportunity for Fed officials to speak before a shutdown period ahead of the Fed’s February meeting and decision. The Fed talked to both George and Waller. George is not a voting member and will retire in 2023. His comments drew limited reaction.

However, the Fed’s Waller was the main story

  1. He is a member of the Board of Governors and therefore has permanent voting rights.
  2. He has not spoken since November. So what he said would be “new”.
  3. He is more of a hawk. So, if there is a change, it could be positive for stocks and negative for the dollar.

His comments had a typical playbook, but he started February by saying 25 basis points were good. He sees this indicator growing and becoming stable in 2023.

However, he also had positive things to say about inflation, but the most impressive comments came when he said that 2022 was a modest year, and he said this:

Hmm… Usually Fed members get on their high horse and say this is what we do, this is what we expect. I liked the “humility” and willingness to bend the other way because it would be “great news”.

US stocks rose ahead of his speech and Q&A:

  • 0.29% higher
  • The S&P rose 0.86%
  • The NASDAQ rose 1.48%
  • The Russell 2000 rose 0.76%
  • 2 year yield 4.183%
  • Yield 10 years 3.488%

Yields did not change significantly before and after Waller’s speech. Despite this, the 2-year is still down -6.4 basis points, and the 10-year is down -2.6 basis points, although the Fed is still targeting at least a double hike in 2023.

In the stock market, the major indexes have seen some buying back in the hope that “the market” will be right and the Fed will be wrong (and they humbly respect that).

So the latest numbers for stocks closed higher, but for the week the Nasdaq gained for the week (thanks to today) but the S&P and Dow Jones were lower.

  • The Dow Jones added 330.91 points, or 1.00%, to 33,375.50 today. For the week, the Dow fell -2.7%
  • Today, the S&P rose 73.74 points, or 1.89%, to 3,972.69. For the week, the S&P is down -0.66%. The index closed above its 200-day moving average at 3968.87, keeping traders excited for the weekend, hoping for further upside next week. .
  • The NASDAQ index rose 288.18 points, or 2.66%, to 11,140.44 today. The index increased by 0.55% during the trading week. This was the third week in a row for the NASDAQ index.

In today’s forex, the NZD and AUD moved higher, helped by “risk-on” flows. Both moved back from their 100- and 200-hour MAs, each turning lower against the USD. JPY was the weakest. The USD was weak mixed with gains against the JPY and CHF and fell against the NZD (-1.31%), AUD (-0.91%) and CAD (-0.64%).

The strongest and weakest major currencies today

During the trading week, the USD was mostly lower, with the exception of gains against the JPY and unchanged against the AUD. The USD saw the biggest declines against GBP (-1.44%) and NZD (also -1.44%).

  • euro, -0.23%
  • JPY +1.33%
  • GBP -1.44%
  • CHF -0.66%
  • CAD -0.13%
  • AUD is unchanged
  • NZD-1.44%


All news on the site does not represent the views of the site, but we automatically submit this news and translate it through software technology on the site rather than a human editor.

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