fxstreet.com 23 Feb, 2021 08:45 am

Gold shines, dollar retreats, Bitcoin tumbles ahead of Fed Powell's critical speech

Gold shines, dollar retreats, Bitcoin tumbles ahead of Fed Powell's critical speech
Here is what you need to know on Tuesday, February 23: The market mood has improved after another down day in stocks as US yields are off the highs. F

After American shares retreated again, S&P 500 futures are rising and the benchmark ten-year bond yields are below their peak of 1.Jerome Powell, Chairman of the Federal Reserve, is set to testify before Congress amid a dilemma – while higher bond yields represent the "reflation trade" and a return to growth, there is also a risk of overheating, as already expressed in commodity prices.More Dollar outlook: How will surging Treasury yields affect Powell’s testimony Christine Lagarde, President of the European Central Bank said she "closely monitoring the evolution of longer-term nominal bond yields," signaling the Frankfurt-based institution is ready to step in and lower returns on debt.All eyes are on Fed Chair Powell's testimony.

Fears of inflation boost commodities and commodity currencies while Bitcoin dives in choppy trading.Commodity currencies experiencing more substantial moves, with AUD/USD topping 0.

Read full story at fxstreet.com