Single Currency Weakens, Jerome Powell Is Ready To Answer Questions

The single currency softened. Euro/Dollar pair has lowered 0.14% to trade at 1.1881. Today, the US will feature CB Consumer Confidence. Future Fed Chair Jerome Powell will deliver his testimony before the Senate Banking Committee and after that there would be a Q&A session. Powell claims that rate will keep on rising and balance sheet will keep on reducing, thus, his policy won’t really differ from Janet Yellen’s one. Members remain concerned that soft inflation won’t pick up any time soon. December’s rate hike remains in store (93%) but it’s doubtful that there would be 3 rate hikes next year.

As we already know, Angela Merkel is going to negotiate with SPD and form a Grand coalition. She is getting ready to meet with SPD and CSU leaders. The Chancellor is hoping that there would a mutual understanding between the parties.

Tomorrow, Germany will announce Preliminary Consumer Price Index and the US will show Preliminary GDP and Pending Home Sales. Janet Yellen will deliver the testimony before a congressional committee.