The Fed Chair will appear before Congress today and forex will react to Powell’s first question and answer session with lawmakers as the leader of the U.S central bank.
EUR/USD: Mid-Term Outlook Perhaps the Best Tool
Central bank outlooks and political positioning will impact forex today and on Wednesday. The Euro after reacting to European Central Bank President Draghi’s rhetoric on Monday now awaits the effects of U.S Fed Chairman Jerome Powell who will be speaking before Congress today. The Euro will remain a focal point and traders with a mid-term outlook may remain bullish.
GBP/USD: Jeremy Corbyn Affecting the Pound?
The Pound like most major currencies has seen a test of its range. The British currency added value on Monday versus the U.S Dollar, as sentiment shifted per the remarks of opposition leader Jeremy Corbyn who says he wants the U.K to maintain strong relations with the E.U, which includes embracing the ‘customs union’ to allow free trade. However, perhaps the biggest point is Corbyn is not the Prime Minister and merely the opposition representing Labor at this juncture.
USD/JPY: Stronger Risk Appetite in Asia Again
The Yen remains within the stronger realm of its value against the U.S Dollar but has been fractionally weaker. Japanese equities have been bullish the past few sessions and investors are showing increased risk appetite. However, important inflation data will come from Japan early on Friday, and late next week the Bank of Japan will issue its monetary policy
Crude Oil: Energy Sector Proving Demand is Alive
U.S Crude Oil has enjoyed a solid trend over the mid-term and even as it was pushed back about ten days ago, it did not fall below important support levels. Supply is strong in the energy sector, but Crude Oil has proven to find solid demand and speculators may believe there is further upside to attain near term.
Gold: Resistance Proving Tough to Break
Gold put in significant gains early on Monday and then maintained its value. However, the precious metal continues to stay below important resistance and traders may continue to trade the commodity technically short term. Also, today’s speech from Jerome Powell in Washington could impact Gold if the U.S Dollar grows volatile.
Yaron Mazor is a senior analyst at SuperTraderTV.
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