All eyes on Fed Chair speech

February 27, 2018

A busy day for markets, with plenty of data set for release.

The EUR/USD went through some big swings yesterday. After building towards a session high of $1.23546, the pair steadily weakened until it hit session lows of $1.22768. It then regained some of those losses, currently trading at $1.23130. The GBP/USD followed most of the Euro pattern yesterday. It made gradual gains throughout early trading to reach session highs of $1.40694. At that point however, the pair weakened over the following few hours until it reached session lows of $1.39275. The pound differed from the Euro in that it could not recover as much of the losses it sustained. Currently the pair is trading at $1.39645.

The Dow went off to the races yesterday, piling on as much as 475 points at one stage. It hit session lows of 25,315.40 in early trading before unleashing itself and posting gains for most of the session, with short term drops in the price. The drops can be considered short term pauses in an otherwise strong day of trading. The Dow is currently at highs of 25,786.10. The Dax was much more subdued in trading yesterday. It hit session highs of 12,602.70 in early trading, then weakened until it reached session lows of 12,482.22. It regained most of those losses to be currently trading at 12,584.20.

Turning to events today and the most significant is the testimony to be given by US Fed Chair, Jerome Powell. This is the first time that Jerome Powell will be testifying in front of the House Financial Services Committee since taking over from Janet Yellen. He is set to testify on the Semi-annual Monetary Policy Report. Other data set for release today includes:

Japan – BoJ Core CPI

Canada – Annual Budget Release

NZ – Visitor Arrivals

Europe – German Prelim CPI, Spanish Flash CPI, European M3 Money Supply & Private Loans, German Buba President Jens Weidmann speaks

US – Durable & Core Durable Goods Orders, Goods Trade Balance, Prelim Wholesale Inventories, HPI, S&P/CS Composite-20 HPI, CB Consumer Confidence, Richmond Manufacturing Index


Disclaimer: The views expressed in this blog are those of the author only. Opinions offered in this blog are no guarantee of market direction and performance. Traders/Investors should not rely on this blog alone for their market information. This blog is not an indicator of market direction and performance. Trading the forex market is high risk and losses can exceed deposits.