Federal Reserve Chairman Jerome Powell testifies in front of the House Financial Services Committee on Wednesday. In prepared remarks to the committee. Powell testified that “crosscurrents” from weaker economic activity across the globe and lingering trade fears are dampening the U.S. economic outlook.
He also said: Inflation continues to run below the Fed’s 2% target. Adding: “There is a risk that weak inflation will be even more persistent than we currently anticipate.”
Powell reiterated the Fed would “act as appropriate” to keep the current economic expansion going.
The prepared remarks added to expectations. The Fed would cut rates at its meeting later this month (July 30-31).
EURUSD: The pair jumped to 1.1256, from 1.1212 levels. A sustained breakout above 1.1256 would challenge 1.1282 levels. Anyway; Stability below 1.1282/1.1256 could mean a return to 1.1225/1.1190 levels. As a result: Above 1.1282 will turn outlook bullish in the short term forecast.
GBPUSD: The pair jumped to 1.2520 levels from 1.2475 levels. Immediate resistance comes at 1.2530 levels. Ahead of 1.2555 levels. Anyway: A daily close above 1.2500 levels. It will signal a potential upside reversal. A clear break above 1.2530/1.2555 levels. It will confirm reversal and pave the way to 1.2650 levels.
USDJPY: Declined sharply from 109.00 levels. At the moment around 108.45 key support. A halt is likely. Above this level will try to test 109.00 levels once again. Below 108.45 will extend fall from 109.00 levels to 107.75 levels…
AUDUSD: The pair has rebounded from/ around 0.8928 levels. Stability below 0.8960/0.8990 will keep the pair under pressure. A return to the downside is likely below that level. Above 0.8990 will pave the way to 0.7030/0.7060 levels.