EUR/USD & Nasdaq Plunging as Powell Unleashes Yield Surge

EUR/USD PLUMMETS, NASDAQ SPIKES LOWER AS FED CHAIR POWELL DISMISSES SURGING TREASURY YIELDS

• EUR/USD sheds 40-pips in a matter of minutes because the US Greenback strengthens broadly
• Nasdaq is promoting off to contemporary session lows on the again of surging Treasury yields
• Fed Chair Powell sparked the transfer by shrugging off current bond market volatility

EUR/USD worth motion snapped sharply decrease throughout afternoon commerce on the heels of broad-based US Greenback energy. The transfer was sparked by an acceleration within the current bond selloff, which catapulted the 10-year Treasury yield towards the 1.55% degree. Markets have been reacting to the dearth of pushback from Fed Chair Powell throughout his speech about current bond market volatility, toeing the road of different current FOMC officers saying they’re merely maintaining a tally of the developments. Powell added that the central financial institution screens a broad vary of economic circumstances and that the Fed is a great distance from its targets.

EUR/USD PRICE CHART: 1-HOUR TIME FRAME (28 FEB TO 04 MAR 2021)

EUR/USD now searches for technical help close to the 1.2000-price degree and will stay below strain if the US Greenback continues to realize floor alongside Treasury yields.

NASDAQ PRICE CHART: DAILY TIME FRAME (24 AUG 2020 TO 04 MAR 2021)

Chart by @RichDvorakFX created utilizing TradingView

Treasury yields additionally coincided with a drop within the Nasdaq to contemporary session lows. The tech-heavy sector has been hit notably arduous as of late as a result of affect of upper rates of interest on fairness valuations. Inventory market bears would possibly try to wrestle Nasdaq worth motion towards the 12,000-mark the place potential technical help resides.

— Written by Wealthy Dvorak, Analyst for DailyFX.com

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