Powell's report to the US Senate Banking Committee will drive the markets (expect EUR/USD and AUD/USD to decline) | InstaForex

FX Daily: Testing the easing pushback

Relevance up to 09:00 2022-06-24 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Markets await the report of Fed Chairman Jerome Powell to the US Senate Banking Committee as it would contain hints on the future of monetary policy. The US central bank already raised interest rates by 0.75% last week, the first time in decades. But Powell made it clear that rates might not rise further at such a pace, making markets relieved.

Surprisingly, although there was another collapse last Thursday, many still hope that rates will rise by about 0.50%, then stop as inflationary pressure decreases. Powell may talk about this during his report to the Senate Banking Committee, in relation to high inflation and its impact on the economy.

Powell may also mention the disruption of transport links, which has already led to a drop in imports and the like. But investors will be more interested on how exactly the Fed will act in July and beyond.

There are two opinions on the market right now. The first has already been described above, which is a kind of soft option. But there is another, tougher one. According to Reuters, many market participants expect the Fed to increase the rate again by 0.75% in July, then raise it by 0.50% in September. Under these conditions, the market may again experience sharp sell-offs, while dollar and Treasury yields will see further growth. In this case, the ICE dollar index may again test the recent local high of 105.56.

Which option will be implemented is difficult to determine as both have a high potential. This is why traders should wait for Powell's speech before making any move in the market..

Forecasts for today:


Exchange Rates 22.06.2022 analysis



The pair has overcome 1.0500. A consolidation below may lead to its further decline to 1.0400.


Exchange Rates 22.06.2022 analysis



The pair broke through 0.6900, which may lead to a further decrease to 0.6800. The driver will be the declining commodity prices and negative sentiment in the stock markets.


Read more: https://www.instaforex.eu/forex_analysis/314179

FX Daily: Testing the easing pushback

InstaForex Analysis

Instant Trading EU Ltd. is the CFD broker operating under the brand instaforex.eu, regulated by CySec with license number 266/15.

Besides CySEC, Instant Trading EU Ltd. is also supervised by the Czech National Bank (CNB), the Slovak National Bank (SNB), and the Polish Financial Supervision Authority (KNF). InstaForex.eu has branches in the Czech Republic, Slovakia, and Poland, where it provides support in local languages. InstaForex.eu is a member of the Investor Compensation Fund (I.C.F) which is an additional security for the client's funds.

InstaForex.eu offers access to around 2,500 instruments (CFDs in Stocks, ETFs, IPOs, Indices, Commodities, Forex, Cryptocurrencies, US Synthetic Stocks) and the MT4 and MT5 platforms,trading accounts in EUR, USD, PLN, CZK, GBP.

More information at: www.instaforex.eu

Follow InstaForex.eu on:

Twitter Facebook YouTube


Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.82%. of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.