The lower dollar turned to a higher dollar. Gold gains were reversed. Oil remains lower. Stocks are still lower
Fed’s Clarida said that his baseline cases for the economy is to continue to make substantial further progress toward the end of the year and that would lead toward a tapering also by the end of the year.
He did hedge himself by saying if the expectations are not met, he would change his mind.
He also stressed that we will know more about the labor market over the next couple months than we do now, citing issues like covid, the ending of emergency employment benefits, school reopening as influencing issues that will be resolved (or not).
For the USD, the dollar went from fighting with the CAD as one of the weakest of currencies to one of the strongest. It still remains well behind the NZD (where analysts are now projecting the start of rate hikes as early as August 18 after the much better than expected employment statistics released overnight), but has reversed declines most vs the JPY, CHF and AUD.
The price of gold traded as high as $1835.85. It is currently trading at $1813.20. That is now near unchanged on the day.
The US stocks continue to show declines in the Dow and S&P. The Dow is down -254 points or -0.73% . The S&P is down 16.5 points or -0.38% after the record close yesterday. The NASDAQ is up modestly (up 0.07%).