Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
Gold Falls Below $4,000 as Strong Dollar and Fed Rate Hike Expectations Weigh on Prices 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
The U.S. Treasuries rose during late European session Tuesday as investors wait to watch Federal Reserve Chairman Jerome Powell’s scheduled testimony on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC, today at 15:00GMT, besides, the 7-year Note auction, due today by 18:00GMT.
The yield on the benchmark 10-year Treasury yield slipped nearly 1-1/2 basis points to 2.661 percent, the super-long 30-year bond yields traded tad lower at 3.030 percent and the yield on the short-term 2-year remained 1 basis point down at 2.496 percent by 11:30GMT.
All eyes later on will be on Fed Chair Powell, as he finally gets to give his delayed semi-annual testimony on monetary policy to Congress, with today’s session to be conducted in front of the Senate Banking Panel. Whether this adds to the markets’ stock of knowledge on the Fed’s policy reaction function might, however, seem doubtful, Daiwa Capital Markets reported.
The FOMC is seemingly split on what might be required to justify a further rate hike this year, but the last set of Committee minutes having indicated that security redemptions would likely end ‘at some point over the latter half of this year’.
Nevertheless, while he has been relatively consistent in his message this year, Powell’s record on communication over past quarters was somewhat erratic, so today might yet throw up a surprise for the markets.
Data-wise, meanwhile, the focus will be on the housing sector, where momentum has been lost in the face of past rate hikes. Housing starts and permits data and the S&P CoreLogic Case Shiller house price index, all for December, are due today, the report added.
Meanwhile, the S&P 500 Futures edged 0.33 percent lower to 2,787.88 by 11:35GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -22.42 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
