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Heads up: Fed chair Powell to speak later in the day

US markets will offer some pretty interesting stuff on the calendar this week. As we transition from March to April, the labour market data will come back into the picture this week. That will keep markets on edge, having already to watch for the happenings in the Middle East still.But to start things off, Fed chair Powell will also be making an appearance later today. And that will be the most notable item on the agenda, besides keeping an eye out for US-Iran headline risks.Powell is set to participate in a moderated discussions at the Harvard University principles of economics class. The session is one that is typically part of the university’s introductory economics curriculum. While there isn’t a clear topic, one can expect Powell to cover a wide range of things from the economy to inflation and monetary policy.I’m quite sure that he will sidestep any questions involving the politicisation of the Fed and what not. That being said, one can reasonably expect US president Trump to snap at Powell again after this engagement. That especially if we hear comments about the Fed wanting to pause on rates and keep their options open amid the situation in the Middle East.The funny thing is that it will be Trump’s own doing that is leading to this scenario. Yet, you can be assured that he will still lay blame to Powell for not cutting interest rates.The Fed chair is scheduled to speak at 1430 GMT. So, that will be the highlight of the agenda today. That as it will be a quiet one in Europe as well as a holiday-shortened one. The Easter holidays are coming soon and that markets in Europe will be closed by the end of the week in observance of Good Friday and then Easter Monday the following week.
This article was written by Justin Low at investinglive.com.

🔗 Source

💡 DMK Insight

Labor market data is back in focus, and here’s why that matters: traders are bracing for volatility as we shift from March to April. With key indicators like jobless claims and non-farm payrolls on the horizon, expect market reactions that could ripple through equities and forex alike. The labor market’s health is a critical gauge for economic strength, influencing Fed policy and interest rates. If the data shows stronger-than-expected job growth, it could bolster the dollar, while a weaker report might trigger a sell-off in risk assets. Keep an eye on the S&P 500 and major currency pairs like EUR/USD, as they often react sharply to labor data. Additionally, geopolitical tensions in the Middle East could further complicate market dynamics, adding another layer of uncertainty. Here’s the thing: while the mainstream narrative might focus solely on the labor data, don’t overlook the potential for unexpected moves based on geopolitical developments. Traders should monitor the upcoming data releases closely, particularly any surprises that could shift sentiment dramatically in either direction.

📮 Takeaway

Watch for labor market data this week; stronger numbers could strengthen the dollar and impact risk assets like the S&P 500.

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