Will Fed Chair Powell Move the USD?

What will happen?

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. During this event, the head of the Federal Reserve will highlight current Fed monetary policy, comment on challenges and provide forecasts. After the session, the committee will hold a question and answer session.

Why is it important?

The testimony is scheduled for the next week after the FOMC Meeting. As a result, we expect Mr. Powell to tell what impacted Fed's decision and share hints on the future US regulator's monetary policy.

Usually, the speeches by Fed Chair Powell result in volatile movements of the USD pairs. For example, in the picture below, you can see how the US dollar strengthened in the short term after Jerome Powell's words. If you traded one lot of EURUSD on May 24, you could have earned around $200.

How to trade on the Fed Chair Powell’s Testimony?

Watch the testimony, track the comments by Fed Chair Powell, and follow the direction of the USD.

The USD will strengthen if the Fed Chair confirms the possibility of the rate hike by the 75 basis points during the following meetings.
Vice versa, if the Fed Chair denies this possibility, the USD will weaken.

Check the Economic Calendar.

Instruments to trade: EURUSD, GBPUSD, USDJPY

TRADE NOW