{"id":33009,"date":"2022-06-22T09:41:15","date_gmt":"2022-06-22T06:41:15","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=33009"},"modified":"2025-10-17T12:11:03","modified_gmt":"2025-10-17T09:11:03","slug":"usd-advances-as-powell-testimony-expected","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/id\/usd-advances-as-powell-testimony-expected\/","title":{"rendered":"USD advances as Powell\u2019s testimony expected"},"content":{"rendered":"

The USD tended to gain against a number of its counterparts yesterday as the US markets reopened after a long weekend, with maybe the most characteristic move being against the JPY as USD\/JPY reached new twenty four year highs. It should be noted that the rise of US yields tended to provide additional support for the greenback, while at the same time the monetary outlook differentials of BoJ tended to weigh on the Japanese currency. On the monetary front we also note that Richmond Fed President Barkin add to the hawkish rhetoric of the Fed by reaffirming Fed Chairman Powell\u2019s forward guidance for a 50 or 75 basis points rate hike in the next meeting, characterising it as reasonable. Today we highlight Fed Chairman Powell\u2019s first testimony before Congress which is to be followed by a second one tomorrow, and should the Fed Chairman sound hawkish, given also his past forward guidance we may see the USD getting some support. At the same time US stockmarkets tended to rise as they tried to recover from a deep sell off last week yet all the main indexes for the US stockmarkets, Dow Jones, S&P 500 and Nasdaq started correcting lower during today\u2019s Asian session. Also yesterday, Elon Musk stated that a recession in the near term is \u201cmore likely than not\u201d while at the same time also stated that there are a few issues to be resolved for the Twitter deal, yet the statements did not seem to adversely affect the markets. No high impact financial releases are expected from the US today, yet we have a high number of Fed policymakers which are about to make statements and overall, we may see fundamentals leading the markets today. North of the US border though we get Canada\u2019s CPI rates for May and a possible acceleration could provide some support for the Loonie as it could intensify the resolve of BoC to curb inflationary pressures with further rate hikes. CAD traders on the other hand may also pay close attention to BoC Deputy Governor Roger\u2019s speech later today for any clues about the bank\u2019s intentions. Similarly, across the pond, we also expect the release of UK\u2019s CPI rates for May and a possible acceleration may induce BoE to widen its rate hikes instead the usual 25 basis points rate hikes it performs, which may provide some support for the pound today. We would also like to note from the Czech Republic CNB\u2019s interest rate decision. The bank has been hiking rates and characteristically in the May meeting proceeded with a 75-basis points rate hike. Yet the CPI rate accelerated further in May reaching 16% yoy, a level not seen for over twenty-five years handling probably a shock to CNB policymakers. Today we would expect the bank to hike rates once again probably with a 100-basis points rate hike and at the same time remain substantially hawkish foreshadowing more rate hikes to come. Moving to the commodities front oil traders may keep an eye out for the API crude oil inventories figure and should the release show that US oil reserves rose substantially in the past week we may see oil prices slipping and vice versa.<\/p>\n\n\n\n

\n