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Economic Indicator: Keep an eye on Fed Chair Powell Testifies


Economic Indicator: Keep an eye on Fed Chair Powell Testifies. Commodity Samachar

GBP: CPI y/y at 11:30 AM

Measures: Change in the price of goods and services purchased by consumers.

Released monthly, about 16 days after the month ends.
Next Release Jul 20, 2022

This is considered the UK’s most important inflation data because it’s used as the central bank’s inflation target.

Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.

Forecast- [9.1%]
Previous- [9.0%]
Actual- ?

Impact- The forecast figure seems to be neutral for base metals and the dollar while positive for bullions. The actual figure is to release at 11:30 AM.


USD: Fed Chair Powell Testifies at 7:00 PM

Measures: Due to testify on the Semi-Annual Monetary Policy Report before the Senate Banking Committee, in Washington DC.

Next Release Jun 23, 2022

Fed Chair Feb 2018 – Feb 2026. Fed Governor May 2012 – Jan 2028. The testimony usually comes in 2 parts: first he reads a prepared statement (a text version is made available on the Fed’s website at the start), then the committee will hold a question and answer session. Since the questions are not known beforehand they can make for some unscripted moments that lead to heavy market volatility.

As head of the central bank, which controls short-term interest rates, he has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

Source: Forex Factory

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