Shorting GBP/USD Below 50 SMA

The previous Fed Head Janet Yellen left her chair for the new Governor who will be making his first debut today. Jerome Powell is an FOMC member thus not new to the job. The market is excited about his first testimony due 13:30 but will be released about an hour and a half later. In the meantime, the US Durable Goods Orders report was released.

The numbers look terrible. Core Durable Orders declined by 0.3% this time, while the Main Core Orders fell by 3.7%. That’s quite a decline for a single month, even though Durable Goods Orders are pretty volatile.

At the moment the market is ignoring the Goods Orders report as the US Dollar makes a run. It dipped for a bit after the report was released, still, the USD buyers went right back in.

Powell is the New Person in Town

Looking at the statement, Powell looks optimistic and hawkish. He believes the economic outlook is rather strong and I agree. He also recognizes that inflation increased above 2% in the mid-term.

He’s as hawkish as the market was expecting. The market should support the personal income and spending, leading the US Dollar to make the most of it at the moment. Is this the reversal we were waiting for?

Find out.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments