Fed chair Powell yesterday walked the path his colleagues had paved for him. In his widely anticipated speech at the Economic Club of New York, Powell said the recent rise in especially long‐term bond yields caused a tightening of general financial conditions which could lessen the need for a (final) rate hike.
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On FX markets, the dollar shows first signs of a bottoming after the June setback. DXY closed at 102.38. The test of EUR/USD 1.10 earlier this week seems rejected (close 1.0956). As indicated, EUR/GBP closed only marginally softer at 0.8595 despite the 50 bps BoE rate hike.