Instant view: Powell strikes balanced tone

3:09 PM 23 August 2019

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 

 

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits