{"id":435399,"date":"2026-08-04T19:19:54","date_gmt":"2026-08-04T12:19:54","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/the-morning-kickstart-markets-open-with-risk-on-tone-435399\/"},"modified":"2026-08-04T19:19:54","modified_gmt":"2026-08-04T12:19:54","slug":"the-morning-kickstart-markets-open-with-risk-on-tone","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/the-morning-kickstart-markets-open-with-risk-on-tone-435399\/","title":{"rendered":"The Morning Kickstart: Markets Open with Risk-On Tone"},"content":{"rendered":"
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The U.S. dollar is mixed in early trading, strengthening against the JPY, CAD, and declining vs the GBP, EUR, AUD and NZD.\u00a0 The biggest change is a -0.49% decline of the USD vs\u00a0 the AUD and a 0.27% decline vs the NZD.\u00a0 The USD is strongest vs the CAD by 0.11%. . In the video above, I take a closer look at three of the major currency pairs\u2014EURUSD, USDJPY, and GBPUSD\u2014highlighting the key technical levels that are driving today’s price action and the levels traders should be watching as the session unfolds.<\/p>\n

Treasury Secretary Scott Bessent struck a supportive tone toward Japan, emphasizing close coordination between Washington and Tokyo on yen stability while stressing that intervention alone is not enough without sound economic policy. He said a stable yen is important for both the U.S. and the broader region, warned that further yen weakness could spill over into other Asian currencies, and expressed confidence that Japan and the Bank of Japan will implement the necessary policies. Bessent also praised Japan’s fiscal efforts, economic outlook, and technology sector, reinforcing the view that the U.S. stands ready to work with Japan to promote orderly currency markets.<\/p>\n

Bessent added that underlying U.S. inflation remains subdued, noting that core inflation outside of energy-related sectors has been “very quiet” and that there are numerous short-term indicators pointing to continued easing in price pressures. While emphasizing that the Fed under Chair Kevin Warsh will continue balancing its growth and inflation mandates, Bessent said policymakers should maintain optionality and treat every meeting as a live, data-dependent decision. He also described the Fed as undergoing a “detox,” while adding that higher interest rates have not slowed AI-related capital spending, underscoring the strength of investment in the sector.\u00a0<\/p>\n

He reiterated his support for Japan’s efforts to stabilize the yen, saying the country’s inflation challenges are being amplified by the currency’s earlier weakness and that Japanese officials understand the policy steps needed to address the issue. He said the U.S. would not have backed Japan’s recent intervention without confidence in its broader policy framework. On the U.S. economy, Bessent noted that core inflation continues to slow, lower-income wage earners are seeing improving conditions, and dismissed fears of a K-shaped economy, arguing the uneven recovery phase has largely passed.<\/p>\n

This morning,\u00a0Anna Paulson, President of the Federal Reserve Bank of Philadelphia, said underlying inflation remains too high despite a stable labor market, reinforcing the need for monetary policy to remain sufficiently restrictive to bring inflation back to the Fed’s 2% target. She described current policy as “mildly restrictive,” noting that if it is not restrictive enough, the data will reveal persistently elevated inflation. While acknowledging that energy prices are volatile, Paulson said policymakers should look through those fluctuations if broader inflation trends continue to improve. She also supported the Fed’s decision to leave rates unchanged at the last FOMC meeting and stressed the importance of keeping an open mind as incoming economic data shape the policy outlook. <\/p>\n

US stocks are moving higher (helped by Bessent comments)<\/p>\n