Summary:
-
Jerome Powell testifies on Capitol Hill
-
Nothing major from the Fed chair
-
US indices near ATHS, USD and Gold both higher
This week the focus in the US has been less on economic releases and more on potentially market moving speeches form prominent figures. After Trump’s speech yesterday at the Economic Club of New York, it’s now the turn of Jerome Powell with the Fed chair testifying before the Joint Economic Committee in Washington DC. The prepared remarks from the Fed chairman have thrown up little by the way of any surprises with the most noteworthy comments as follows:
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app-
Policy appropriate as long as the economy stays on track
-
Baseline outlook favourable but noteworthy risks remain
-
Sluggish growth abroad, trade uncertainty risks remain
-
Investors risk appetite elevated in some asset classes
The last remark here is interesting and a pretty obvious hint at US stock indices given that they are close to their recent record highs. However, there’s little to suggest that the Fed will move against this anytime soon. The Q&A session has recently begun but there has been little of note thus far.
The US500 is trading at its highest level of the day as Powell speaks. Price is just over 10 points from its highest ever level of 3102. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
