The S&P 500 is at the Tipping Point? The Federal Reserve Chairman, And Mr. Powell Crushed A Negative Rate Of Paris

The S&P 500, and Jerome Powell to the Federal reserve, the U.S. Dollar, the Japanese Yen, the Asia-Pacific, the Market is Open

The S&P 500’s Drop as Federal reserve Chairman, and mr. Powell has Been a Negative Rate of Bets of the US Dollar and Yen Gain

The S&P 500 may be more the point of switch, after the Fed Chairman, and Jerome Powell, a hit it depends on the quality and rate expectations. On the chart below, the Fed Funds Futures can be seen slowly price negative rate on a year-like Mr. Powell spoke. Simultaneously, risk aversion started to pick up the pace. In North America session ended, the S&P 500 and the Dow Jones closed -1.75% and -2.17% lower, respectively.

The President of the central bank of the largest economy in the world, has also offered sobering comments about the growth. He mentioned that the virus raises concerns in the long-term economic damage, and that the outlook was “very uncertain”. His comment was in response to this that the heads of the central banks of other major economies have been spoken, in particular, of the The bank of Japan and the Reserve Bank of New Zealand. (RBNZ).

The port is linked to the U.S. Dollar, and the same behavior, the Japanese Yen were the best performing major currencies on Thursday. It is like the growth-oriented Australian Dollar trimmed gains of the European session. The worst-performing major currency was the new zealand Dollar, which was crushed as the RBNZ expanded quantitative easing and unlike the Fed, which has left the door open to negative rates.

Jerome Powell has Been Dovish Expectations that the S&P 500 Wells

The Graph Created by TradingView

On Thursday, the Asia and the Pacific of the Trading Session

Asia-Pacific stocks may follow Wall Street lower on Thursday. Risk aversion may bode ill for the Australian Dollar, which is awaiting local employment data. Australia may lose up to 575k jobs in April as unemployment ticks up to 8.2%, from 5.2%. A worse-than-expected results may push AUD/USD to the downside. Down the road, the Aussie can stay tuned on the wider market sentiment, as the RBA stands to put on the monetary policy.

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The S&P 500 Technical Analysis

The S&P 500 futures contracts on the 4-hour chart, below, seems to be trying to get in under the rising support from late April. The slope of the appreciation of u.s. equities has, on the whole of the leg the discoloration of the end. Still, the key support stands below, 2755 – nl-2771. That may pause declines in the index, and possibly result in a break. Otherwise, descending further may open the door for a larger reversal.

The S&P 500 Futures 4 Hour Chart

The Graph Created by TradingView

— Written by Daniel Dubrovsky, a Currency Analyst to DailyFX.com

To contact Daniel use the comments section below, or @ddubrovskyFX on Twitter