Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
USD: easy there
Jerome Powell just gave an exclusive speech on NBC’s “Today” show. Just so that you understand how exclusive it is: the former Fed Chairman Alan Greenspan appeared before the cameras in 1987 foreshadowing a record drop in the stock market. A similar performance was done by Ben Bernanke in 2009 resuming the financial crisis of that time.
So the appearance of the Fed Chair on the TV is the same like the appearance of a comet in the sky – and similarly is often interpreted as a harbinger of hard realities to come.
What did he say?
The main message was that the situation is not easy, quite special, quite unseen before, but the Fed is prepared and has all it takes to fight back the virus consequences. The main objective of the speech, apparently, was to cool down the market assuring that “we still got ammo”. So it did – the USD eased on the JPY, as the first result of the speech.
USD easy, then?
Yes, quite so. The battle was fierce between the two currencies to secure the 111.70 range of heights, but the speech of Jerome Powell made the USD cede its positions. 108.30 is eyed as support now. Market steamed off.
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.
Canada will publish Retail Sales and Core Retail Sales on June 21 at 15:30 GMT+3.