{"id":57351,"date":"2023-03-07T10:35:58","date_gmt":"2023-03-07T08:35:58","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=57351"},"modified":"2025-10-13T12:49:57","modified_gmt":"2025-10-13T09:49:57","slug":"attention-shifts-to-powells-testimony","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/vi\/attention-shifts-to-powells-testimony\/","title":{"rendered":"Attention shifts to Powell\u2019s testimony"},"content":{"rendered":"

The greenback tended to edge lower against its counterparts yesterday as market attention turns towards Fed Chairman Powell\u2019s testimony before the US Senate later today and please note that the statement may be released by the Fed ahead of the testimony. The Fed Chairman may opt to remain hawkish stating that the fight against inflation is still not over and that the bank may have to do more in order to curb inflationary pressures in the US economy. Should that be the case, and should he sound also confident and more aggressive, while he is grilled by questions from US lawmakers, we may see the USD getting some support as the market may have to reposition itself. On the flip side, the Fed Chairman may opt not to commit the bank to any monetary policy path in order to keep the bank\u2019s options open given that the CPI and employment data for February are still to be released. Across the world, as was widely expected RBA hiked rates by 25 basis points, raising the cash rate from 3.35% to 3.60%. In Governor Lowe\u2019s accompanying statement<\/a>, the bank stated that the CPI rate may have peaked and also noted that growth for the Australian economy has slowed down, while the Australian employment market remains very tight. There was though a slight change of wording in its forward guidance, as it stated that “The Board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary\u2026\u201d. That tended to show an easing of its hawkishness, as in its previous forward guidance the bank was determined that more rate increases were required and thus tended to disappoint Aussie traders turning the rate hike into a dovish hike that weakened AUD upon release. Overall, should we note that this easing of the bank\u2019s hawkishness is to be reflected also in statements of RBA policymakers, we may see AUD slipping further and thus we highlight Governor Lowe\u2019s speech as tomorrow\u2019s Asian session starts. Finally, in Europe we note the acceleration of the Swiss CPI rates for February accelerated both on a month-on-month as well as on a year-on-year level, which could sharpen the hawkishness of the Swiss National Bank which could keep the Franc supported on a monetary level.\u00a0<\/p>\n\n\n\n

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