Before Powell's testimony today, I think it would be important to take a look at what we already know and what we could expect, as well as what to look out for in the latest coverage of the outlook of the USD.
In this testimony today, we will need to look out for whether Powell still thinks inflation is transitory or perhaps more persistent and ongoing than it was originally expected. US's CPI numbers gauge short term inflation, and if inflation ends up sitting at 4%, the likelihood that the Fed will exercise tighter monetary policy is greater, according to an article from The Hill. If the Fed is showing concern towards the mounting inflation and hinting at the potential raise of rates, USD will probably jump in price.
The USD is up today as price is testing a double top around 93.110. Momentum looks strong today which means investors might be anticipating a more hawkish stance by the Fed. Support lies below in the 91.500s.
USDCAD is up today as well as the pair is touching resistance around 1.26462 on the 1D chart. Price is still in its long term consolidation zone, but it looks like the pair wants to test the top once again. The latest candle has broken above the 200 DMA which could be a bullish sign should it close above this level.
AU fell lower this morning as the buck is starting to look much weaker than the dollar in terms of an economic and monetary standpoint. New resistance is around .73083 which price will likely have trouble coming back to regardless of Powell's testimony today. The obvious and strong downtrend indicates that we will probably see further downside in the future.
9/24/2021 The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%. Our outlook I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short […]
Let's look into the Bank of England's Monetary Policy Summary which took place on Thursday the 23rd of September, 2021. Quick Summary: BoE keeps interest rates unchanged at 0.10% BoE will maintain its asset purchasing target at £875B The vote to keep policy unchanged passed with a 7-2 vote The minutes of the MPC meeting […]
9/23/2021 The precious metal snapped three days of gains and tumbled back down to the support range from $1740s-1760s approximately. Gold is down -.56% on the day going into the opening of the NY session. Our outlook Gold will likely rise on the US indices falling, and is usually due to slowing economic growth. Because […]
9/21/2021 Bitcoin Update For the past month, Bitcoin went on a tear rising over 20% from the beginning of August. Recently, however, China and other risk-off factors have contributed to a 23% decline from the recent highs around $52,760. Now the most prominent crypto has touched these monthly lows which could be a potentially good […]