There is a nice afternoon turn in risk sentiment unfolding. The S&P 500 is now up 33 points to 5771 after falling as low as 5666. That’s a +100 turn in the index from the lows at noon ET.

I didn’t see anything particularly notable from Powell as he remained in a ‘wait-and-see’ mode. If anything, he didn’t sound overly worried about rising inflation expectations or tariff inflation. Still, pricing for a rate cut in May has come down today to 36% from as high as 60% earlier in the week and close to 50% yesterday.

Yields are rising with US 2s up 5.1 bps to 4.01%. In turn, USD/JPY is now higher on the session, erasing earlier losses. EUR/USD is up nearly 100 pips on the day as well.

On the USD/JPY chart, there is something of a double bottom.