Monetary policy remains “accommodative,” according to the Fed, arguing for continued, well-advertised, baby-step increases in the Fed’s benchmark rate and a similarly gradual reduction in its balance sheet of Treasury and mortgage-backed securities. In other words, it’s unlikely there will be new news in Powell’s testimony. Is it even worth tuning in? The answer is yes. There are a few subjects that could prove unsettling should Powell decide to introduce them — the odds are low — at a time when financial markets have rediscovered that prices can go down as well as up. read more @ https://www.marketwatch.com/story/five-surprises-to-watch-for-in-powells-first-big-appearance-as-fed-chairman-2018-02-26?siteid=rss&rss=1
EURO WILL B ETHE SCORER FOR 2018.
Inflation, growth and the ECB’s monetary policy
As I said in my introductory statement to the European Parliament plenary earlier this month, the euro area economy is expanding robustly. Growth is stronger than previously expected and more evenly distributed across sectors and geographies than at any time since the financial crisis. According to the latest data, the euro area economy grew by 2.5% in 2017, reflecting strong domestic momentum in private consumption and investment.
These positive developments have been fostered and supported by the pass-through of the ECB’s monetary policy measures, which have significantly eased borrowing conditions for households and firms, notably also for small and medium-sized enterprises. Read More @ http://www.ecb.europa.eu/press/key/date/2018/html/ecb.sp180226_1.en.html
What is the Technical Charts saying about the USD?
TODAY’S NEWS THAT MGHT AFFECT YOUR TECHNICAL TRADES.
- 1.00pm – BOJ will release the CPI data and is expected to be all good. We maintain BUY for JPY.
- 4.00pm – German & Spanish CPI data is expected to be release; we believe the data will in favour for the EUR. We maintain BUY for EURO.
- 6.00pm – Weidmann will speak and it should create come good volatility for EURO. Message is expected to be hawkish.
- 9.30pm – USD will go to action with New FED Chairman Jerome Powell; we expect no major changes to previous policies. We don’t see any serious movement of the USD, rather we maintain SELL for USD.
- 9.30pm – Durable goods Orders, Goods Trade Balance data will be released – we expect no changes to the data. Jerome Powell Testimony should override this data tonight.
- 11.00pm – CB Consumer Confidence – no change and no impact.
Overall the market will be observing new Fed Chair direction – Read More @ https://www.marketwatch.com/story/five-surprises-to-watch-for-in-powells-first-big-appearance-as-fed-chairman-2018-02-26?siteid=rss&rss=1
Be cautious today as there might be some big movements; always observe good money management. We maintain SELL for the USD.
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