Euro / U.S. DollarShort
EUR/USD what to expect ahead after Powell's testimony?
In this post I will mention what price action to expect ahead after FOMC and Powell's testimony and for what reasons?
FUNDAMENTAL KEY QUOTES
1- " Powell dismissed the idea of 1970s-style price increases—higher than 10%—as "very, very unlikely." He's also got "a level of confidence" that those pressures will eventually come down". (Played down inflation fears)
2- The old adage apparently applies to raising interest rates, too. While a debate on tapering bond purchases may be in the cards, the Fed is nowhere near touching rates, Powell said. (Suggesting tapering is too soon to take place, RECENT DOVISH TONE (USD NEGATIVE), but optimism on high employment, and economic improvement give a chance to a sooner than later monetary policy shift).
3- DOVISH ECB, extended PEPP, buying bond program unchanged.
4- U.S. calendar upbeat data (Signs for a faster recovery in U.S. than in EU).
What price action to expect ahead?
- ACCORDING TO THE MIXED TONE OF THE FED (RECENT DOVISH, LATER HAWKISH, SOONER TAPERING BONDS, THE DOWNTREND HAS LOST MOMENTUM, AND THE PRICE RANGE NARROWED, FOLLOWING THE RECENT SITUATIONS IN EU, U.S. THE PRICE RANGE SHALL BE (1.1950-1.1750), EUR IS NOT EXPECTED TO BREAK ABOVE 1.1950 AT LEAST TILL THE NEXT FED MEETING.
- THIS PICTURE REMAINS ONLY TILL UPCOMING NEWS AND DATA THAT MAY CHANGE THE PRICE RANGE, SO I WILL UPDATE ACCORDINGLY -
FUNDAMENTAL KEY QUOTES
1- " Powell dismissed the idea of 1970s-style price increases—higher than 10%—as "very, very unlikely." He's also got "a level of confidence" that those pressures will eventually come down". (Played down inflation fears)
2- The old adage apparently applies to raising interest rates, too. While a debate on tapering bond purchases may be in the cards, the Fed is nowhere near touching rates, Powell said. (Suggesting tapering is too soon to take place, RECENT DOVISH TONE (USD NEGATIVE), but optimism on high employment, and economic improvement give a chance to a sooner than later monetary policy shift).
3- DOVISH ECB, extended PEPP, buying bond program unchanged.
4- U.S. calendar upbeat data (Signs for a faster recovery in U.S. than in EU).
What price action to expect ahead?
- ACCORDING TO THE MIXED TONE OF THE FED (RECENT DOVISH, LATER HAWKISH, SOONER TAPERING BONDS, THE DOWNTREND HAS LOST MOMENTUM, AND THE PRICE RANGE NARROWED, FOLLOWING THE RECENT SITUATIONS IN EU, U.S. THE PRICE RANGE SHALL BE (1.1950-1.1750), EUR IS NOT EXPECTED TO BREAK ABOVE 1.1950 AT LEAST TILL THE NEXT FED MEETING.
- THIS PICTURE REMAINS ONLY TILL UPCOMING NEWS AND DATA THAT MAY CHANGE THE PRICE RANGE, SO I WILL UPDATE ACCORDINGLY -
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.