Federal Reserve Chair Powell is set to deliver a speech today at the ECB forum. This has caused speculation and anticipation in the forex market. The market is also keeping an eye on other key events and statements, including ECB speakers Schnabel, de Guindos, and President Lagarde.
In addition to Powell’s speech, there is increasing speculation about a potential PBOC RRR cut in the near future. Japan’s finance minister Suzuki also made some remarks that could impact the yen.
The RBA has mentioned that a significant rise in inflation expectations could lead to higher interest rates. Meanwhile, there are predictions from KiwiBank for rate cuts starting in November to prevent economic damage. Vanguard has also expressed concerns about the risk of USD/JPY rising to 170.
US President Biden has emphasized that no one is above the law, which could have implications for the financial markets. Furthermore, Australian inflation expectations have seen a significant increase, while UK shop price inflation has risen at a slower rate.
In terms of economic data, South Korea’s June CPI came in slightly lower than expected, and New Zealand’s Q2 business confidence has dropped further. There are also reports on the potential impact of rising US yields and warnings about a potential reversal in US stocks.
Despite these developments, the NASDAQ index has seen a strong start and closed at a record level. Legal action against Roaring Kitty of GameStop for securities fraud has been dismissed, and the WSJ has cited the possibility of a Republican sweep in November.
Overall, the forex market is eagerly awaiting Powell’s speech and closely monitoring various economic indicators and statements that could impact currency exchange rates. The market remains volatile, and traders are advised to stay informed and cautious in their trading decisions.