Some broad themes
- Monetary policy is appropriate and will likely stay that way
- Economic outlook favorable.
- Monetary policy and the economy are in a good place.
- Risks are global slowdown and trade
- Fiscal policy is unsustainable
- We don't know where maximum employment is. The Fed needs to let the data speak and the data is not sending any signals that labor market is so hot or that inflation is moving up.
The Fed is on hold.
Some levels at the beginning and near the end of the testimony. Overall the movement was minimal.
- EURUSD, 1.1011 start. 1.100 end. -11 pips
- GBPUSD, 1.2837 start. 1.2842 end. +5 pips
- USDJPY, 108.74 start. 108.80 end. Up 6 pips
- USDCHF, 0.9895 start. 0.9894 end. Down 1 pip
- USDCAD, 1.3244 start. 1.3238 end, Down 6 pips
- AUDUSD, 0.6833 start. 0.6834 end. Up 1 pip.
- NZDUSD, 0.6402 start. 0.6406 end. Up 4 pips
The US stock market at 10 AM ET.
- S&P index, 3091.57. 3095.11 end, up 3.54 points
- NASDAQ index, 8479.50. 8491.46 end, up 11.94 points
- Dow 27697.33, 27749.23 end, up 52 points
US debt yields:
- 2 year, 1.6299% start. 1.636% end,, up 0.1 bp
- 10 year 1.8687% start. 1.8808% end, up 1.2 bps
- 30 year, 2.3473% start. 2.3597% end, up 1.24 basis points
In other markets:
- Spot gold, $1465.80 start. $1462.74 end, down $3.06
- WTI crude oil futures, $57.20 start. $57.32 end, up $0.12
