Cryptocurrency markets are in an increasingly complex process. Every day, information about a different cryptocurrency exchange is disseminated. While this process initially started with the bankruptcy of FTX, gradually all the companies working with FTX filed for bankruptcy. This process was enough to make both cryptocurrency exchanges and investors nervous. Now, markets are eagerly waiting for Fed Chairman Jerome Powell is speech this week, which will be marked by various events related to cryptocurrencies.
What Kind Of Statement Will The Fed Chair Make?
The DXY is falling as markets await Fed Chair Powell’s speech. Federal Reserve (Fed) Chairman Jerome Powell will address the U.S. Senate on Tuesday and Wednesday. Any testimony from Powell is likely to shed light on the Fed’s interest rate policy in the coming period. At the same time, cryptocurrency exchanges seem to be heavily affected by the interest rate policy.
It was expected that the Fed, which raised interest rates by 25 basis points last month, would make the same increase this month, but the fact that economic indicators continue to exceed expectations makes this situation difficult.
What About Nonfarm Employment?
While experts are not ruling out a 50 basis point rate hike at the March 22 meeting, the nonfarm employment data released Friday and Powell’s comments will play a key role in that regard. If the numbers come in above expectations, it could lead to a further rise in inflation and a tightening of the Fed’s interest rate policy.
Citibank Distorts Forecasts
Citibank, which published a similar forecast last year, was not right this time. According to the bank, employment growth of 255,000 was expected. Markets were surprised to learn that January statistics would show more than 500,000 jobs.
The DXY Closed The Week With Losses
On the other hand, Powell’s comments and the employment numbers could have a significant impact on the Dollar Index (DXY). The DXY closed lower last week for the first time since January. The DXY, which fell 0.20 percent to 104.4 in the last twenty-four hours, is unlikely to show any significant movement until Powell’s speech.