Fed Chair Powell’s Testimony Keeps Markets Steady
Yesterday’s market activity was relatively subdued on both sides of the Atlantic, with the spotlight firmly on Fed Chair Powell’s semi-annual testimony before Congress. As anticipated, his remarks and the ensuing Q&A session offered no surprises or new insights into the Fed’s stance on interest rate cuts.
Consequently, interest rate forecasts and the dollar remained steady, with no significant changes. On the currency front, most major currencies traded within narrow ranges, a trend that extended into overnight trading in Asia-Pacific markets.
Today’s schedule remains light on economic data releases. Fed Chair Powell is set to give his second day of testimony before Congress, but he is not expected to deviate from his previous comments. Other Fed officials’ remarks may also attract some attention, but overall, range trading is likely to dominate the FX markets.
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