Markets in anticipation of Powell, Money Flows before the start of Europe

Markets are now tuning for the upcoming Fed chairman's statement, Powell, to the US Congress today. Investors, though with slightly scarred hopes, are making encouraging pledges that the Fed will not give up their previous intentions - cut this month by 50 basis points and at least two more by the end of the year. Obviously, however, this can not be done because of the latest NFP report. Yesterday at the end of the session, Wall Street turned green, and trade in Asia was also good and optimistic.

Early indications, however, from European index futures show a cautious start to come. Something normal, because market participants are starting to position themselves more moderately. Today, we expect the markets to be a little quieter, with a slight touch of fright and caution. The moment of truth will be at 17:00.

At the trade front, the high-level negotiations resumed, with the two delegations saying the talks were constructive and new meetings are about to begin. Trump intends to exclude some of the sectors that are currently experiencing the effect of tariffs beyond their reach, thus mitigating the relationship between the two countries. Negotiations resumed after months of lull, and the G-20 reached a temporary ceasefire.

With more cautious trading today, we expect the dollar to rise against its main competitors at least until the beginning of Powell's statement. At this point, FX markets remain relatively quiet as raw materials.

For those who will trade the Canadian, there is something in the economic calendar today, namely the BoC's interest rate decision and a report on monetary policy.

Later, we have a statement to Bullard, and oil traders will have to look for oil stocks as well. API data from yesterday showed a bigger inventory than expected, but the price of oil reaches an increase.

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