Fed Members Comments Spark Volatility in the Markets
GBPUSD breaks below the 100 hour moving average after the comments from Fed’s Bullard and Fed’s President Jerome Powell. Bullard believes that the U.S. manufacturing industry has affected by the escalation in global trade war. He also said that he hopes that the Fed’s next policy decision will straight out the yield curve. Earlier Fed’s Bostic said that he agrees with Fed President Powell’s view that the FED will act appropriate to sustain the economic recovery. Jerome Powell noted that vulnerabilities to the US financial system are moderate; the inflation expectations are pinned around the Fed’s 2% target.
Comments from Fed members spark volatility in the markets with EURUSD crushing down to 1.1343 just to find support at the 200 day moving average and to rebound above 1.1370. Gold pushed down to 1,411 the previous resistance and rebounded back to 1,420. The pound during Jerome Powell’s speech hit the daily low at 1.2671 but also managed to rebound sharply above the 1.27 zone.