{"id":89827,"date":"2024-08-23T11:26:11","date_gmt":"2024-08-23T08:26:11","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=89827"},"modified":"2026-02-09T11:25:46","modified_gmt":"2026-02-09T09:25:46","slug":"powells-speech-to-be-closely-watched","status":"publish","type":"post","link":"https:\/\/www.smartchinaeducation.com\/ms\/powells-speech-to-be-closely-watched\/","title":{"rendered":"Powell\u2019s speech to be closely watched"},"content":{"rendered":"

The USD halted its four-day losing streak against its counterparts yesterday. Today, we highlight the start of the Jackson Hole Symposium and Fed Chairman Powell\u2019s speech about the US economic outlook and monetary policy, is expected to be closely watched by traders for any clues regarding the bank\u2019s intentions. Any dovish signals from the Fed Chairman could weigh on the USD as it would verify the market\u2019s extensive rate-cutting expectations. The market expects the bank to proceed with its first rate cut in the September meeting and proceed with another 25-basis points rate cut in the November meeting and a 50-basis points rate cut in December. The speech is expected to affect also US stock markets and gold\u2019s price and a possible sufficiently dovish tone in Fed Chairman Powell\u2019s speech could provide support for US stock markets and gold\u2019s price. On the other hand, the market\u2019s dovish expectations may be overstretched, and should the speech show some hesitancy for extensive rate cuts it could force the market to reposition itself thus weighing on US stock markets and gold, while at the same time providing asymmetric support for the USD in the FX Market. Last but not least, should the Fed Chairman stick to the script not offering much new we may see a lukewarm reaction by the markets. <\/p>\n\n\n\n

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