What we've been watching in markets - TDS

Analysts at TD Securities explained that Powell's testimony offered little to go by for FX markets, though broad based USD strength against the G10 was the name of the game with notable laggards that included GBP, JPY and CAD. 

Key Quotes:

"GBP has come under newfound pressure following the Trade Bill vote. 1.3050 offers next support for cable."

"This comes against a backdrop muted G7FX vol. Our positioning metrics suggest the market is sitting net long USDs, though still not an extreme. Without a durable macro catalyst however, the combination of a summer lull and carry costs suggest the prevailing 93.50/95.50 DXY range could persist for a while yet."

"Treasuries saw little reaction to Powell's testimony, but will continue to look for the Q&A from day two of testimony for any surprises. Trade war concerns appear to have dissipated and strong earnings momentum appears to be keeping risk markets elevated, weighing on Treasuries."