Highly Anticipated Powell Testimony Boosts DOLLAR.
This article is originally referred from FXPrimus News.
FXPrimus has summarized the important market indicator of the day.
Today’s Important Indicators
Markets plummeted in the Tuesday session amid a bullish US Dollar following a hawkish testimony from new Fed Chair while the DOLLAR Index surged.
Participants will look into European Inflation and the US Growth figures to decide on the direction of the markets.
Today’s Forecast for Important Trading Indicators
- EURUSD – Euro plummets ~80 pips against DOLLAR following Powell’s testimony, $1.2205 next. Euro-Dollar fell to a daily low of 1.2220 in the Tuesday session as Powell reiterated Fed’s gradual approach to policy tightening and gave a hawkish outlook to economic growth. The pair found bottom at the February 9 swing low at 1.2205 despite an array of positive data for the Euro, forming a sideways market with the 1.2555 top.
- GBPUSD – POUND falls to triangle trendline as DOLLAR gets stronger, posts 60 pips losses. CABLE hit a 3-day low at 1.3855 yesterday in the aftermath of Fed Chair Powell’s hawkish statements. Price was rejected at the bottom trendline of the triangle appearing on the daily chart below. With a light calendar for the currency, the price is likely to remain within the boundaries following the double bottom.
- USDJPY – DOLLAR marginally higher against YEN as markets shift the balance of risk. YEN lost nearly 40 pips intraday against its counterpart following Powell’s outlook on gradual rate hikes and a raise in US Yields. Although DOLLAR rose against all majors, the effect on the YEN was marginal as uncertainty over month-end flows weighed in. The pair is currently trading at 107.00 US GDP eyed.
- USOIL – OIL price slips after API report despite the big draw, as build in Gasoline weighs in. WTI lost $1.25pb in the Tuesday session following API’s report on Crude inventories. The precious commodity fell as API reported a build of 1.914 millio0n gasoline stockpiles. Investors focus on today’s EIA report, which is due at 15:30 GMT.
- XAUUSD – GOLD plunges following Powell’s testimony as gradual hikes likely to continue. GOLD plunged $15 per ounce yesterday as all US indicators as well as political development pointed higher. The precious metal deteriorated to $1320/ounce as DOLLAR surged after the widely waited testimony. Gold dropped to a 2-week low.
- US Indexes – DJ and S&P plunged by 1.27% and 1.16% respectively.
- European Indexes – UK 100 closed 0.10% lower, DE 30 by 0.29%.
- Asian Indexes – ASX 200 fell by 0.68%, Nikkei 225 plummeted by 1.44%, Hang Seng trades 1.65% higher.
- US Equities – Twitter dipped by 2.64%, Alphabet by -2.29%.
Original Source: FXPrimus News