President Donald Trump is expected to announce that Jay Powell will be the next Chair of the Federal Reserve in a special announcement at 19:00 GMT. What does it mean for EUR/USD? Here is the view from ING:
Here is their view, courtesy of eFXnews:
ING FX Strategy Research discusses EUR/USD outlook ahead of the likely nomination today of Jerome Powell to become the next Fed Chair.
…As he (Powell) is widely perceived to represent the continuity of the current Fed’s stance (cautious gradualism in policy tightening) this should lead to a modestly soft USD and lower UST yields as the Taylor premium is priced out.
EUR/USD will be primarily driven by the announcement of the next Fed Chair nominee. As per above, the likely nomination of Powell suggests a lower USD and an upside to EUR/USD, with the cross likely moving above the 1.1700 level,†ING argues.
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