Feb 12, 2020
Bank Governor’s Volatility
Fears that the virus will slow factory activity and consumer spending in the world's second largest economy has shaken global stocks and commodities.
Many of these markets are still trying to recover. U.S. stock markets rose yesterday after the Fed Chair or Governor, Jerome Powell said that the U.S. economy is strong. Powell said that the Fed is closely monitoring the coronavirus in China because it could lead to disruptions that affect the global economy as the global domino effect could be triggered.
Bank governors usually trigger volatility when they speak. The reason for that is they control the interest rates. Traders are often looking to hear clues regarding future changes in the interest rate or stimulation plans.
Today Federal Reserve chairman Jerome Powell will testify in the senate at 15.00 and Bank of New Zealand governor will speak at 19.10 GMT. High volatility and short-term opportunities are expected in the major currency pairs during and after the speeches.
These charts and the opinions above are for educational and informational purposes only.
Technical analysis does not guarantee full accuracy and it could be subject to revision over time. We do not have any liability regarding financial results based on the use of this information.