Fed chief Powell signals central bank is done with signaling
Federal Reserve Chairman Jerome Powell has a new message for financial markets: watch the data on jobs, wages and inflation for signals on monetary policy – not the U.S. central bank’s words or forecasts. That’s a big change for the Fed, which for most of the past decade has done what it could to steer markets on its policy intentions as it nursed a fragile economy to recovery after the financial crisis. As part of that so-called forward guidance, the Fed for years described its policy stance as “accommodative” to assure markets that it would not strangle economic growth. Read More @ https://www.reuters.com/article/us-usa-fed/fed-chief-powell-signals-central-bank-is-done-with-signaling-idUSKCN1M7299
U.S. dollar rises on weaker euro, Fed policy; stocks gain
The U.S. dollar held near a one-week high against a basket of major currencies on Thursday following an interest rise by the Federal Reserve on Wednesday, while robust economic growth and a rally in the shares of Apple Inc and Amazon.com Inc boosted the U.S. stock market. Read More @ https://www.reuters.com/article/us-global-markets/u-s-dollar-rises-on-weaker-euro-fed-policy-stocks-gain-idUSKCN1M7041?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
WHAT IS THE USD INDEX SAYING?
The USD has broken the re-test line and now heading for 94.50; FED firm on US economic growth and 2% inflation indicator is taking the USD higher, the US-CHINA trade war is also pushing the USD higher for now. If you are trying to short the USD just be cautious.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 3.55pm – German unemployment change; expected to be good.
- 4.00pm – Spain will release their CPI – expect EURO price movement.
- 4.30pm – UK will release their current account & final GDP data – GBP Pairs volatility expected.
- 5.00pm – EURO will release their CPI data – expect EURO Pairs volatility. We maintain BUY for EURO.
- 8.30pm – Canada will release their GDP data – CAD pairs volatility expected. We are cautious over CAD due to NAFTA Deal discussion with US.
- 8.30pm – US will release personal spending, personal income and Core PCE prices – we are expecting no change on data – little or no movements.
The market will end with US winning this week; the market is also staying cautious. FEDs assurance of US economy is keeping the USD new high this week. Always maintain good money management.
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