The Pick Is in: Trump Taps Powell For Fed Chair-EUR/USD Update
Shain Vernier • 1 min read
Well, the verdict is in: Trump has nominated Jerome Powell to oversee the U.S. Federal Reserve. Citing the need for strong leadership at the FED, President Trump issued a White House Rose Garden press conference promptly at 3:00 PM EST to nominate Powell.
Will Congress Approve Powell?
Often times, no news is good news. Experts expected Powell to be nominated and the lack of surprise was a kind development for all holding open positions in the markets. The overwhelming consensus is that Powell will be approved by the U.S. Congress in short order.
It is important to realize that in the polarized U.S. political atmosphere, nothing is a slam dunk. In the coming weeks, it will be a good idea to keep an eye on Powell’s confirmation hearing. If it bogs down or becomes a political football, uncertainty will rear its ugly head in the marketplace.
In a Wednesday market update, I issued a sell recommendation for the EUR/USD. It has performed well, trading +25 pips to the green. If you are planning on letting this position ride into tomorrow’s session be sure to use a proper risk management strategy.
In addition, we had a winning EUR/USD sell signal that just hit its profit target minutes ago. Kudos to all who grabbed some pips from the trade!
Be sure to stay tuned to FX Leaders for ideas and analysis facing the EUR/USD as we roll into Friday’s session.