Jerome Powell’s Testimony and Market Reactions

By Tomasz Wisniewski|

Published: July 09 2024, 08:05 GMT+0

Jerome Powell’s Testimony and Market Reactions

Hello traders, welcome on Tuesday! Today’s calendar is relatively empty, with the main event being Jerome Powell’s testimony about monetary policy before the Senate Banking Committee. This will take place after the start of the American session and is expected to provide some insights into future monetary policy, potentially influencing both indices and the American dollar.

In the indices market, we see an interesting divergence: the German DAX is sharply down, while the British FTSE is climbing higher. This split direction in European indices is notable, especially as American futures are trading higher, showing a positive outlook for US markets.

On the currency front, the Australian dollar and the American dollar are showing strength, whereas the Swiss franc and Japanese yen are the weakest performers. However, these movements are relatively mild at the moment, suggesting a cautious market environment.

Commodities are where the most significant moves are happening. WTI oil is currently breaking key support at $82.10, indicating potential for further decline. Silver is attempting a reversal, and gold is experiencing a significant drop after a bearish bounce off the $2,368 resistance. This hard bounce could signal a short to mid-term sell-off for gold.

Cryptocurrencies are also in the spotlight with Bitcoin fighting for survival around the key support level of $57,000. Ethereum has bounced off the crucial support at $2,850, maintaining a positive sentiment as long as it stays above this level.

That’s the current market situation on Tuesday morning. Let’s see what the rest of the day brings us!