Fed Chairman Jerome Powell reiterated on Monday his expectations that at the next Fed meeting, the central bank will begin the process of reducing the balance sheet, a process that will last three years. Monetary amounts are not a big part of the inflation story right now, Powell noted, saying having a strong job market […]
Tag: Fed
There is an obvious need to quickly move to a more neutral level, higher if necessary
Fed Chairman Jerome Powell he said in a speech on Monday that there is an obvious need to quickly move to a more neutral level and even more restrictive levels if necessary to restore price stability, Reuters reported. The risk is rising that there could be a prolonged period of high inflation that could push […]
EUR/USD weakened below 1.1050 ahead of Powell’s speech
EUR/USD is slightly weaker below 1.1050 on a quiet start to the week, amid a lack of new catalysts. The pair is currently caught between support and resistance as it awaits Powell’s comments from the Fed and other geopolitical developments. The EUR/USD trades weak just below the 1.1050 level on a quiet start to the […]
The Ukraine war hasn’t changed my thinking about shrinking the balance sheet – Raphael Bostic
Atlanta Fed President and FOMC member, Raphael Bostic, said on Monday that the war in Ukraine had not changed his thinking about reducing the balance sheet, which could happen sooner and faster than last time, Reuters reported. In addition, according to the official, the reductions in the balance sheets will offer the guideline for the […]
USD/CAD modest gains above 1.2600, rising oil prices cap pair’s upside
USD/CAD gains some positive traction on Monday and breaks a four-day losing streak. The Fed’s aggressive outlook benefits the USD and supports the pair’s move higher. Bullish crude oil prices benefit the CAD and could cap any significant gains in the pair. The pair USD/CAD moves higher during the first half of the European session […]
USD/CHF falls to one-week lows and flirts with the 0.9300 level
A combination of factors drags USD/CHF lower for the fourth day in a row on Monday. CHF captures safe-haven money flows and puts downward pressure on the pair amid subdued USD demand. The Fed’s dovish outlook favors USD bulls and should help limit deeper losses in the pair. The pair USD/CHF has fallen to a […]
Has room to rally towards wedge resistance near 119.50
USD/JPY consolidates below six-year highs of 119.40 as markets turn cautious. The divergence between the Fed and the BoJ and the crisis in Ukraine remain the underlying factors influencing the pair. The rising wedge resistance on the 4hr chart at 119.52 remains a tough nut to crack. The USD/JPY pair is trading sideways below six-year […]
AUD/USD pulls back from two-week highs and falls back below 0.7400
AUD/USD pulls back from two-week high hit early Monday amid a stronger dollar. The Fed’s dovish outlook coupled with cautious sentiment benefits the safe-haven USD. Rising commodity prices offer some support to the AUD and help limit deeper losses. The pair AUD/USD moves lower during the European session on Monday, pulling back from a fresh […]
Seven 0.25% rate hikes expected in 2022 and five more in 2023 – Goldman Sachs
Analysts at Goldman Sachs have raised their expectations for the Fed’s monetary policy tighteningespecially after Chairman Jerome Powell said in the March decision that every meeting will be live. Featured Comments “The biggest tailwind for spending is the continued recovery of spending in the services sectorsensitive to the virus, which should rebound in the future, […]
The dollar strengthens as the conflict in Ukraine continues, the focus is on Powell
This is what you need to know to trade today monday march 21: The US dollar remains firm, as the market has become risk averse on Monday amid the protracted war between Russia and Ukraine. The escalation of the conflict sank investor confidence after Ukraine refused to give up the beleaguered southern port city of […]
