The US Dollar Index suffered a sharp decline on Wednesday following Federal Reserve Chairman’s speech at The Economic Club of New York. In his speech Jay Powell said US monetary policy was not on a “pre-set” path and added that interest rates were just below neutral which dampened optimism amongst investors for a more aggressive rate-hike cycle. The DXY fell from 97.53 to a low of 96.69 in just minutes.
The somewhat dovish speech saw the S&P 500 rise 1.8% on the session. The Dow Jones Industrial Average surged 600 points seeing its biggest rally in eight months Meanwhile, the Nasdaq Composite Index (IXIC) closed at 7,082.70, gaining 85 points.
Oil prices were back under pressure after Saudi Arabia said it would not cut production on its own to stabilise the market.. WTI slumped to its lowest level in more than a year at $50.05
Looking ahead, the macroeconomic calendar sees the release of Us PCE Price Index, Personal Spending, Unemployment Claims, Pending Home Sales and the FOMC meeting minutes.