Bitcoin seems to reverse up from the local dips. Are there enough reasons to buy it now?
Fed’s Powell will report to Congress
Federal Reserve Chair Jerome Powell on June 16 at 17:00 MT time begins the first of two days of testimony. It is a really important event for traders as the prospect for the economic recovery will volatile markets.
What is the Powell’s testimony?
It is a report to Congress. His speech consists of 2 parts. The first one is the prepared statement. The second one is a question and answer session. Traders are interested more in the last one as Powell doesn’t know questions before and he may unveil some unscripted moments that add fresh market movements. This time the main focus will be on how fast the Fed thinks the USA will recover and what measures the Fed will offer to support economy.
What to expect?
Analysts widely anticipate the upcoming Fed’s message will echo the pessimistic outlook Jerome Powell gave last week. After that negative prospect the market sentiment hugely deteriorated. It may happen again today. Today’s meeting even becomes a political issue. Democrats are pushing for further fiscal stimulus, while Republicans are against it as the US May jobs report was encouraging. Jerome Powell doesn’t want to enter the political fight. That’s why it’s more intriguing today to watch which side will be right.
What does it mean for a trader?
If the tone of Powell’s speech is dire and prospects are grim, safe-haven assets such as USD and gold will gain.
Otherwise, if Jerome Powell is optimistic (what’s less possible), stocks and riskier currencies will rise.
The US inflation will come out today at 15:30 GMT+3. Traders can’t wait to see the numbers as they will impact all the pairs with the USD!
The greatest sale of Bitcoin continues! It has approached the psychological mark of $30,000. The traders’ focus remains on Thursday’s report on US inflation.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?