How the FOMC and and Powell's testify can affect the price?
- The downtrend last week was supported mainly because of the Fed's HAWKISH tone, and other factors, if Powell's testify today signs for holding the interest rate of 0 for longer time (no hikes by the end of 2021 as some members offered in the last meeting), also if the Powell does not give any sign when the taper would happen, then this will affect the downtrend negatively and would cap dollar gains at this point.
1- No signs of when would be taper time, signing for no rate hikes through the end of 2021, then price range would be (1.1850-1.2050).
2- Approve what has been said in last meeting (soon taper, possibility of raising interest rate by end of 2021), then price range would be (1.1700-1.1950).
WAITING FOR POWELL'S TESTIFY, THE FOMC MEETING UNFORTUNATELY SUPPORTED THE RECENT MONETARY POLICY AND HINTED THE ECONOMY IS NOT READY FOR ANY RATE HIKES BY THIS YEAR, AND ALSO SHOWED NO SUPPORT FOR URGENT TAPERING, AND ACCORDINGLY POWELL'S TESTIFY IS EXPECTED TO BE NEGATIVE FOR DOWNTREND CONTINUATION, AND GIVES A BETTER CHANCE FOR SCENARIO ONE TO HAPPEN.
- The downtrend last week was supported mainly because of the Fed's HAWKISH tone, and other factors, if Powell's testify today signs for holding the interest rate of 0 for longer time (no hikes by the end of 2021 as some members offered in the last meeting), also if the Powell does not give any sign when the taper would happen, then this will affect the downtrend negatively and would cap dollar gains at this point.
1- No signs of when would be taper time, signing for no rate hikes through the end of 2021, then price range would be (1.1850-1.2050).
2- Approve what has been said in last meeting (soon taper, possibility of raising interest rate by end of 2021), then price range would be (1.1700-1.1950).
WAITING FOR POWELL'S TESTIFY, THE FOMC MEETING UNFORTUNATELY SUPPORTED THE RECENT MONETARY POLICY AND HINTED THE ECONOMY IS NOT READY FOR ANY RATE HIKES BY THIS YEAR, AND ALSO SHOWED NO SUPPORT FOR URGENT TAPERING, AND ACCORDINGLY POWELL'S TESTIFY IS EXPECTED TO BE NEGATIVE FOR DOWNTREND CONTINUATION, AND GIVES A BETTER CHANCE FOR SCENARIO ONE TO HAPPEN.
Comment:
Powell's testify had no hints at all about tapering or adjusting monetary policy, that leaves the downtrend with the same latest strength, price is expected to fall from this point targeting 1.1800.