Jerome Powell Inspired About The US Economy
Today marks the second round of Jerome Powell’s testimony and a rather large amount of the US data. The market is a little pressured ahead of events. Stocks dropped on increased speculations about 4 rate hikes in 2018. The New Fed Chair is much likely to express his positive outlook of the economy. If he brings out something other than improved inflation, jobs and growth forecasts, market will be truly surprised. As of data, the US is about to release personal income and spending, unemployment claims, construction spending and ISM manufacturing.
Meanwhile, Sterling is still trading as the weakest. Versus the greenback, Pound is now at its 6-week minimum. Today, Theresa May (Britain’s Prime Minister) and Donald Tusk (European Council President) are about to discuss the future of UK-EU relationship. The meeting is expected to burden Sterling even more.