In the context of the latest Fed rate hike and solid jobs report, Jerome Powell will give a speech on the state of the economy. Powell’s speech is likely to have implications for the cryptocurrency market, including gold and Bitcoin. That’s why investors and traders will follow the conversation closely. Dogecoin (DOGE) price and detailed market data from hereyou can see.
How will Jerome Powell’s speech affect the markets?
In light of US labor market statistics released last week, US Fed Chairman Jerome Powell will speak at an event on Tuesday. Both forehead and crypto markets rallied after the Federal Reserve posted a 25 basis point rate hike, which was in line with expectations. However, the latest employment data could significantly influence the central bank’s decisions to control inflation. The report essentially meant that unemployment in the US was at a 54-year low.
cryptocoin.com As you follow, the US added as many as 517,000 jobs for January, according to data released by the Bureau of Labor Statistics. The figure was well above market expectations. Job growth was significantly higher compared to December, which reported 223,000 jobs added. Amid growing concerns about the impact of employment data on future interest rate decisions, Jerome Powell is scheduled to speak at an event hosted by The Economic Club of Washington DC. Also, Carlyle’s co-founder and co-chairman, David Rubenstein, will interview Powell at the event. Interestingly, Rubenstein expressed confidence in the potential of the crypto industry in his recent comments. Noting that he is optimistic about crypto, he added that some blockchain companies will continue to be successful in the future.
Following the release of the employment data, the US Dollar Index (DXY) rose sharply by 0.50%, while the Bitcoin (BTC) price took a hit. At press time, BTC price is trading at $23,000, down 0.28% in the last 24 hours. If the hawk tone picks up in his speech, Powell is likely to break the resistance in the crypto market and trigger further declines.
Gold moves a little after worst week in 7 months
Gold prices were quiet on Monday after posting their worst week in seven months. Focus is now on Fed Chairman Jerome Powell’s speech after stronger-than-expected jobs data in the US raised fears about further monetary tightening.
Gold prices fell more than 3% last week after labor data showed US jobs to be much stronger than expected in January. The data fueled fears that the Fed has enough economic vacuum to continue raising interest rates. This led to a recovery rally in dollar and Treasury yields. This weighed on most metals prices as gold, which had risen strongly from Friday’s data, suffered deep losses. The yellow metal fell below the key $1,900 support for the first time in nearly a month.
The Fed increased interest rates as expected last week and signaled that it would continue to do so in the near term. This has spurred growing bets that the central bank could move away from its hawkish stance by the end of the year. But those bets were quickly reversed by Friday’s strong jobs data, which also fueled fears that US inflation could stay higher than expected.
