As we are all aware, today's highly anticipated event took the market by storm. Fed Chair Powell's Testimony took center stage and the market is seeing how important that event was.
EURUSD dipped from 1.1376 to 1.1236 in a matter of hours. And has since slowly crawled back up to 1.1336. A big drop down followed by a steady recovery is how all analysts are looking at it.
What was said that could have caused this reaction? To start things off, The Federal Reserve chair, Jerome Powell, said that persistent inflation may require a more aggressive approach by the central bank.
Powell said that the central bank might start reducing its bond purchases next month, as long as inflation remained persistent, and that it is likely to do so into next year.
On the other hand, we see volatility in the financial markets has been significant since the discovery of the Omicron variant in Namibia last week. It led to a sharp decline in the S&P 500 on Friday before beginning to recover on Monday. How will this affect the EURUSD, and for how long? Give us your thoughts below.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
forex, trading conditions, technical analysis, fundamental analysis