Powell Era Begins in Earnest at Federal Reserve

The Bank of England will issue its Monetary Policy Summary today. Purchasing Managers Index numbers will come from the E.U and States. 

Fed Outlines Need to be Flexible, U.S Dollar Weakens in Forex

The Jay Powell era as the presenter of the Federal Reserve’s Monetary Policy Statement has officially gotten underway. Contrasting with his predecessor, Powell was quick to highlight the Fed will base its conclusions on data which has been recently published, as much as it gauges long-term economic outlooks. The Fed raised its interest as expected, and while it highlighted the possibility of two more hikes to come this calendar year – it did make the subtle point that it intends on being flexible to existing conditions as they develop. Wall Street remained cautious with moderate losses yesterday, but the U.S Dollar did weaken against the major currencies. Asian equities have traded lower this morning, except for Japan’s Nikkei and Topix Indexes which have posted gains.

European Data Impact Possibility, Currencies near Key Technical Levels

The Euro and Pound have moved higher after the U.S Fed’s pronouncements, but traders will have plenty to consider as both currencies approach mid-term resistance levels. The Yen which strengthened is near important support. The Bank of England will publish its Monetary Policy Summary in the coming hours, but no major changes are expected. The European Union will see a flurry of Purchasing Manager Index reports this morning, and the data could impact the broad markets. European equity Indexes were mostly negative yesterday.

Gold and Crude Oil Thrust Upwards, Speculative Interest Certain to Rising

Gold and U.S Crude Oil ignited with thrusting engines higher late on Wednesday. The precious metal is near 1330.00 U.S Dollars an ounce, while Crude Oil is above 65.00 Dollars a barrel. Intriguingly, both commodities are now positioned near resistance levels which have proven strong in the mid-term, and this will generate speculative interest.

Purchasing Managers Index Data from E.U & U.S, Bank of England Outlook

The Bank of England’s Monetary Policy Summary will influence forex when it is released at 12:00 GMT.

• 9:00 AM GMT, E.U, Flash Manufacturing PMI
• 9:30 AM GMT, U.K, Retail Sales
• 12:00 PM GMT, U.K, BoE Monetary Policy Summary
• 13:45 PM GMT, U.S, Flash Manufacturing PMI

Yaron Mazor is a senior analyst at SuperTraderTV.

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