The markets might not have been pricing in a U.S. interest rate rise this month, U.S. economic data is maintaining its consistent strength and the Federal Reserve is maintaining its public intention towards raising U.S. interest rates around three times in 2017.
U.S. stocks opened at record intraday highs on Wednesday, with the Dow breaching the 21,000 mark for the first time ever as a more measured tone in President Donald Trump's speech reassured investors and bank stocks gained on higher chances of an interest rate hike this month.
Global stocks have repeatedly hit record highs, there remains some skepticism over the sustainability of the rally with a selloff on the table if Trump fails to deliver his market shaking tax cuts and fiscal policies.
The dollar rose broadly on Tuesday after two Federal Reserve policymakers pointed to a potential U.S. interest rates rise next month, turning attention to the bullish fundamentals of the world's biggest economy.
The Federal Reserve will likely need to raise interest rates at an upcoming meeting, Fed Chair Janet Yellen said on Tuesday, although she flagged considerable uncertainty over economic policy under the Trump administration.