Daily Summary: USD sinks, indices rally after Powell

• FOMC hiked rates by 25 basis points to 4.50-4.75% range. Decision was in-line with expectations

• US dollar gained after the decision while US indices dropped

• Those moves were reversed during Powell's press conference as Fed Chair did not struck a hawkish tone as expected

• USD erased all of the gains with EURUSD looking towards a 1.10 handle. Wall Street indices are trading around 1% higher after launching today's cash trading with small dip

• Energy commodities are taking a hit today. Oil drops 2% while US natural gas trades almost 8% on the day

• OPEC+ decided to leave output policy unchanged at a meeting today

• ADP employment report pointed to a 106k jobs gain in January (exp. 170k)

• US manufacturing ISM index dropped from 48.4 to 47.4 pts in January (exp. 48.0)

• US JOLTS climbed above 11 million in December

• Euro area inflation decelerated from 9.2 to 8.5% YoY in January (exp. 9.0% YoY)

• Manufacturing PMI from Germany for January was revised slightly higher while PMI from France was revised slightly lower

• Official US report on oil inventories showed an unexpected increase in oil, gasoline and distillate inventories. However, build in oil was smaller than signaled by API yesterday

• EUR and AUD are the best performing major currencies while USD and CAD lag the most

• Precious metals gain, supported by weak USD. Gold and silver trade around 0.9% higher each while palladium rallies over 2%

• Cryptocurrencies trade higher, benefiting from risk-on moods. Bitcoin jumps 1.1%, Ethereum adds 2.2% and Litecoin rallies 5%

GOLD rallied on dovish Powell. Precious metal broke above the upper limit of a recent short-term trading range at $1,933 per ounce and almost reached recent local high in the $1,949 area. Source: xStation5