Markets Await Powell Senate Testimony

Fed Chair Jerome Powell will be testifying before the Senate Banking Committee today on the semi-annual Monetary Policy Report, which will be closely watched by markets for clues as to rate hike policy and inflation expectations.



  1. Fed Chair Jerome Powell will be testifying before the US Senate today about the Federal Reserve’s monetary policy. Markets will be listening closely for clues as to forthcoming rate hikes and inflation expectations. If Powell is more dovish than expected, stocks could see a strong upwards run after making some notable gains over recent days.
  2. The Australian Dollar is the weakest major currency after the Reserve Bank of Australia stated that it sees inflation as having already peaked, lowering expectations for further rate hikes. The Bank hiked its Cash Rate as expected from 3.35% to 3.60%.
  3. Swiss CPI (inflation) data came in higher than expected yesterday, showing a month-on-month increase of 0.7% compared to the 0.5% increase which had been expected.
  4. Global stock markets are mixed after trading mostly higher yesterday. Both the S&P 500 Index and the NASDAQ 100 Index have formed potentially bearish head and shoulders chart patterns on the hourly charts.
  5. The Fed’s hawkish expressions are also pushing up US Treasury Yields, with the 2-Year trading near its recent 15-year high and looking likely to rise higher still over coming days. This may bring an opportunity to trend traders who can access this asset, whether through a CFD or through the relevant micro future.
  6. In the Forex market, the Euro is currently the strongest major currency, while the Australian Dollar is the weakest. However, we can expect the US Dollar will likely return to the forefront of the market later after Powell’s testimony.
  7. Some commodities are performing very well, with a few continuing to rise after having recently made significant bullish breakouts, notably Sugar and Cocoa.
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