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Return Of The Queen
Risk sentiment was generally buoyant Tuesday, as market participants watched Janet Yellen make the case to US lawmakers for nearly $2 trillion in additional fiscal stimulus.
It wasn't a particularly hard sell. Although Republicans are likely to rediscover their inner fiscal hawks now that they needn't fear any backlash from Donald Trump and his defunct Twitter account, some in the GOP are probably feeling a bit despondent following recent events, which left the party tarnished and splintered.
Interesting how the USD is seen as a primary near term driver of US equities, but the EUR or CNY are not seen as equivalent drivers of Euro or Chinese equities.
I have seen analysts opine that the US $ now takes more of the volatility in financial markets and acts as more of a buffer versus intermediate to long term US Treasury bonds. In the past the bond market took more of the financial market volatility according to the analysis. Not sure if this is true and if central bank activism is the cause but it is an idea that is worth thinking about.