Relief Across The Market After Powell Pick

U.S. President Joe Biden decided to nominate Jerome Powell for a second term as Federal Reserve chair and thus, calmed the markets. So, what we got was the status-quo scenario and a stronger U.S. dollar as Biden’s pick bolstered expectations that interest rates will climb next year. Lael Brainard was elevated to vice chair, making Powel and Brainard a powerful duo.

The greenback traded higher and pushed other counterparts lower in turn.

EUR/UD: As long as the euro remains below 1.13, we expect further losses.

GBP/USD: The cable broke below 1.3390. We see a next lower target at 1.3350 and if 1.34 serves as a lower resistance we anticipate another leg down toward 1.33.

DAX: Prepare for a test of the crucial 16000-support. Below 15980 bearish momentum could accelerate with a lower target seen at 15800. Back above 16210 we may see a run for 16400.


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