Forexlive Americas FX news wrap: No new talking points from Powell ...Middle East

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Powell: We do not need to be in a hurry to adjust policyPowell Q&A: Don't see any reason to be in a hurry to lower ratesECB Schnabel: Uncertainty in trade has risen dramaticallyFed's Williams: US to grow by around 2% this year and nextTrump sends Bessent to Ukraine, says the war must end soonFederal Reserve Chair Powell signaled banking regulations might be due for reassessmentUS tariffs on China could be paused if “serious headway” is made on fentanyl - reportText of Trump steel and aluminum tariffs indicate rates effective from March 12Fed's Hammack: It's likely appropraite to hold rates steady for 'some time'More from Hammack: Rate hike is not my base caseCanada December building permits +11.0% vs +1.7% expectedBank of Canada appoints Michelle Alexopoulos to governing councilUS January NFIB small business optimism index 102.8 vs 104.6 expected

Gold down $10 to $2896US 10-year yields up 4 bps to 4.53%WTI crude oil up 93-cents to $73.25S&P 500 flatGBP leads, CHF lags

The US dollar steadily sagged in North American trading for most of the day even as yields remained buoyant. The euro and pound were particularly strong as they climbed throughout the day. A flurry of dollar selling boosted EUR/USD and GBP/USD by around 30 pips in very short order in the US afternoon but there were no headlines behind the move.

US equities managed to score a small gain after opening lower in another sign of resilience. There may have been some apprehension about Powell taking a hawkish turn. Instead, he delivered the same talking points as in his post-FOMC press conference where he said the Fed was in 'no hurry' to hike. There is a remarkable consistency of the 'wait-and-see' stance among Fed officials.

On net, today's moves unwound some recent USD strength but one chart worth eyeing is AUD/USD, which is challenging the top of the two-week range. That's come with increasing enthusiasm about China, even though that trade took something of a break today.

This article was written by Adam Button at www.forexlive.com.

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