There were no major economic data releases scheduled for today. However, investors got to hear from 3 members so far today and given how recent remarks from Bullard impacted markets, those speeches were watched closely. Nevertheless, members of the Federal Reserve were much more cautious in their remarks.
President of New York Fed, John Williams, declined to provide an interest rate hike forecast during an interview with Bloomberg. Williams said that rate hikes are still way off. Similar remarks were offered by President of Cleveland Fed, Loretta Mester. She said that the US economy is not at a point where it would be justified to scale back monetary policy accommodation. Also President of the San Francisco Fed, Mary Daly, remained cautious not to trigger any major market moves. However, Daly had an easier job doing so as her speech related more to climate change rather than monetary policy.
Powell to testify at 7:00 pm BST
This is not the end! Investors will get to hear from 1 more Fed member today - Chairman Powell at 7:00 pm BST. Powell will testify on pandemic support before the House subcommittee. As it is usually the case for testimonies of Fed Chairmans in Congress, text of the speech has been published earlier. However, text of a speech suggests that it may be a non-event for the markets. Powell is set to say that inflation should move back to Fed's goal once supply imbalances subside. Moreover, the prepared text does not make any mentions of possible, near-term policy changes.
Meanwhile, US dollar index (USDIDX) is attempting to regain some ground following yesterday's drop. The index continues to trade at elevated levels following last week's FOMC meeting and hawkish remarks from Bullard. Near-term resistance zone to watch ranges around 92.50 mark while the nearest support can be found at 91.40 swing level.
Source: xStation5
