Shares rise, dollar wobbles after market sees Powell comments as dovish

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Shares globally jumped and most currencies rose against the dollar on Wednesday, as investors discerned a dovish tone in comments from Fed Chair Jerome Powell, though a policy tweak by the ECB meant European bonds sat out the rally.

that disinflation has begun but warned Friday's eye-popping jobs report showed why the battle against inflation will "take quite a bit of time."

Aggressive rate increases by the Fed and other central banks last year to tame inflation had hurt shares and boosted the dollar, but those trends have reversed this year on signs that inflation had begun to slacken, raising hopes of rate cuts towards the end of this year. "The dollar selling also reflected what Powell didn’t say," said MUFG FX analysts in a morning note to clients.

 

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