Markets are preparing for tomorrow’s appearance from Powell, the buck has been gyrating as participants place bets on the extent to which the chairman is perceived dovish or hawkish. Yesterday’s price action reflected a market that is very much undecided on the outcome. The US dollar gained handsomely across the European morning session, with these gains reversed sharply in the afternoon. EURUSD saw some strong movement heading into the London fix at 4 pm with an 85pip move to the upside taking place across a 20-minute period. Markets will continue to position ahead of the big event tomorrow.
Today’s economic calendar is light with the 2 key releases being minutes from the ECB’s last announcement in July, additionally, US GDP numbers will also be featured at 1.30 pm. Even though data will be limited today volatility will likely remain in light of the Jackson Hole Symposium commencing today.
Written by Viv Savani. 7:20am, August 25th 2022
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