White House: Fed Chairman's testimony shows President Biden's economic plan working

Anil Panchal FXStreet

Following Fed Chairman Jerome Powell’s testimony in front of Congress, the US White House (WH) official crossed wires via Reuters.

The diplomat initially cited the last week’s upward revision to economic forecasts by the US Federal Reserve (Fed) before mentioning Powell as affirming President Joe Biden’s economic plan is working.

Key comments…

As you know, we do not comment on the Fed's monetary policy decisions but their updated forecasts last week reaffirm that President Biden's economic plan is working and that America is on the move again, and Chairman Powell reiterated this today in his congressional testimony.

Fx implications

Although market players paid a little heed to the WH comments, such updates strengthen the odds of Biden’s infrastructure spending plan that has been stuck of late. The same should help market sentiment. That said, the risk barometer AUD/USD remains sidelined around 0.7550 after two consecutive days of recovery from the yearly low.

Read: AUD/USD edges higher around 0.7550 on Jerome Powell-led optimism

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flat lines near 1.1800 as traders brace for US PPI release

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties. Traders await the preliminary reading of the Consumer Price Index from Germany on Friday for more clues about the pace of future policy easing. On the US front, the Producer Price Index report will be released.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold awaits acceptance above $5,200 and US PPI data

Gold consolidates previous rebound near $5,200 amid risk-off markets, awaiting US PPI release. The US Dollar eyes a flattish weekly close as dovish Fed outlook and tariff woes outweigh geopolitical risks. Gold yearns for acceptance above $5,200 to resume the uptrend, with a bullish RSI in play.

Top Crypto Gainers: Stable and Decred rally, Pippin approaches record highs

Altcoins, such as Stable, Decred, and Pippin, are extending gains so far this week, defying the risk-averse conditions in the broader cryptocurrency market. Stable and Pippin are near record high levels, while Decred extends its breakout rally above $30.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Bitcoin steadies as traders eye US–Iran talks

Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Thursday after a 6.2% relief rally the previous day amid a broader downward trend.