Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

72.12% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Testimony by the Fed Chair Powell: upbeat for the USD?

Testimony by the Fed Chair Powell: upbeat for the USD?

Information is not investment advice

What?

The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report before the House Financial Services Committee at 17:00 MT time on Tuesday and Wednesday.

Why is that important?

The Federal Reserve Chair may provide some insights into the possible changes to the current monetary policy by the bank and highlight the current risks for the economy. If Mr. Powell positive comments, the USD will rise. Alternatively, the acknowledgment of the negative outlook will weaken the US dollar.

What to expect?

Analysts anticipate Jerome Powell to stick to his words and provide generally upbeat comments. As a potential risk, we expect the Fed Chair to highlight the impact of coronavirus on the global economy. All in all, the Fed has already indicated the steadiness in the interest rates during the previous meeting. Thus, we don’t expect a major turn in the monetary policy stance for now.

Also, the market is awaiting the Fed to announce the changes to the inflation approach during this year. That’s why more clues on whether this shift to dovishness will happen may pull the USD down.  The Fed’s future plans concerning its balance sheet will be followed, too.

The levels of EUR/USD and USD/JPY

On the H4 chart of EUR/USD, we can see that the pair broke the lower border of the descending trading channel, but found the last September’s support at 1.0903. If Mr. Powell provides hawkish comments, the USD will get stronger and we may see a breakout of that level. This action may provoke the fall towards 1.0884. If the Fed Chair is dovish in his views, the pair may return into the descending channel. In that case, the 1.094-1.095 levels will be favorable for bulls.  

EURUSDH44656.png

Now let’s look at the H4 chart of USD/JPY. The pair has strengthened since the beginning of the day but still could not reach the 110 level. In case of optimistic Fed comments, pay attention to the retest of the 110 level. Alternatively, a fall below the 109.82 level to the support at 109.67 will be inevitable.

USDJPYH4ghgh.png

LOG IN

Similar

Popular

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later