CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

77.48% of retail investor accounts lose money when trading CFDs with this provider.

USD resurgence after Powell Testimony

Published: 08.03.2023
by Joseph Jeffriess

Hi traders, today we have run over the reaction to the Fed testimony after it sent shock waves through the markets.

The policy looks more decisive now, and Powell looks more in line with other members and the comments we have seen from them. The peak rate figure could be higher than first expected. Rate rises could pick up if the data warrants it. Overall inflation is seen as moderate, but it could remain bumpy.

Traders jumped back into the USD and fled risk assets. Gold and AUD, and other precious metals were hardest hit. Stock indices retreated, and we also saw oil drop by 4% as it looks like traders are concerned about recession and demand.

Part two of the testimony and US employment data to come. Will the fireworks continue? Find out in my next report.

Today’s Analysis Update Video

* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.

Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.

Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.