What to expect from Jackson Hole and Fed Chair Jerome Powell
Key points
- Fed Chair Powell will discuss economic issues and inflation outlooks in a speech at 10:05am ET Friday, August 25th
- Markets are currently pricing in a 42% likelihood of another US rate hike in 2023
- USD/CHN continues to trade near historic highs as US stocks outperform Chinese stocks by 25%
Potential topics for Powell's speech
Jerome Powell could speak to a number of issues that would align with the topic of this year's symposium, "Structural Shifts in the Global Economy." Traders anticipate commentary on the future of US monetary policy, specifically if more rate hikes are planned for the coming months. Markets are predicting a 37% chance of a 25 bps hike by the end of 2023 and a 5% chance of a 50 bps hike, according to CME's Fedwatch tool.
How to trade economic events
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading economic events with forex requires an account with a forex provider like tastyfx. Many traders watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s Learn Center. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
