A text of the eagerly anticipated speech from Fed chair Jerome Powell has been released in recent minutes, with the overall tone pretty balanced and fairly neutral. Key lines from the text were that the Fed “will act as appropriate to sustain the expansion” and that the 3 weeks since the last meeting were “eventful”. There was no mention of the “mid-cycle adjustment” that roiled markets last time out and this speech seems to be almost deliberately neutral, possibly offering little by the way of firm conviction in light of the recent China tariff news. In terms of market reaction it’s a bit of a mixed bag with yields ticking lower along with the USD while stocks have moved off their recent lows.
EURUSD has seen on of the clearer moves with the pair rising by around 30 pips since the text was released. Source: xStation