EUR/USD PLUMMETS, NASDAQ SPIKES LOWER AS FED CHAIR POWELL DISMISSES SURGING TREASURY YIELDS
EUR/USD sheds 40-pips in a matter of moments as the US Dollar strengthens broadly
Nasdaq is selling off to new session lows on the back of surging Treasury returns
Fed Chair Powell triggered the move by shrugging off recent bond market volatility
EUR/USD cost action snapped sharply lower during afternoon trade on the insides of broad-based US Dollar strength. The move was triggered by an acceleration at the recent bond selloff, which catapulted the 10-year Treasury return toward the 1.55% level. Markets were reacting to the dearth of pushback from Fed Chair Powell during his speech about current bond market volatility, toeing the line of other recent FOMC officials saying they are just keeping an eye on the developments. Powell added that the central bank monitors a wide assortment of financial requirements and that the Fed is a very long way from its own targets.
EUR/USD now searches for specialized support near the 1.2000-price level and may remain under stress if the US Dollar continues to gain ground alongside Treasury yields.
Treasury yields also coincided with a drop in the Nasdaq to new session lows. The tech-heavy industry was hit particularly hard as of late because of the effect of higher rates of interest on equity valuations. Stock market bears might try to wrestle Nasdaq price action toward the 12,000-mark where potential technical support resides.