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.
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