Equities love cheap money and thus also love Yellen talk dovish. No wonder then we see a bullish break on charts.
Prices sit well above channel… but the question is will it last? here are few points to consider..
- Q1 is about to end and banks may come out with bad results
- Oil is looking wobbly again
- and most important, stocks are trading at a level last seen on Dec 17, which means we are back where we were before the first rate hike happened!
Hence, i doubt Fed’s cheap talk. I guess its an effort just to weaken the dollar ahead of the second rate hike