Today’s Fundamental Event, Date: June 30, 2020 – Fed Chair Jerome Powell’S Testimony

Fed Chair Jerome Powell’S Testimony
On June 30, 2020, Fed Chair Jerome Powell is going to conduct 3rd testimony for the month of June. Before this, June 16 and 17 was also important as Powell published testimony representing the economic situation in U.S. and outlook.
Highlights of Powell’s testimony addressed on June16 and 17
Even after the unexpectedly positive May employment report, nearly 20 million jobs have been lost on net since February, and the reported unemployment rate has risen about 10 percentage points, to 13.3 percent.

• The decline in real gross domestic product (GDP) this quarter is likely to be the most severe on record.
• With an easing of restrictions on mobility and commerce and the extension of federal loans and grants, some businesses are opening up, while stimulus checks and unemployment benefits are supporting household incomes and spending. As a result, employment moved higher in May.
• If a small or medium-sized business becomes insolvent because the economy recovers too slowly, we lose more than just that business. These businesses are the heart of our economy and often embody the work of generations.
• With weak demand and large price declines for some goods and services—such as apparel, gasoline, air travel, and hotels—consumer price inflation has dropped noticeably in recent months. But indicators of longer-term inflation expectations have been fairly steady.
• Since March, we have been purchasing sizable quantities of Treasury securities and agency mortgage-backed securities in order to support the smooth functioning of these markets, which are vital to the flow of credit in the economy.
• FOMC will increase our holdings of Treasury securities and agency mortgage-backed securities over coming months at least at the current pace. We will closely monitor developments and are prepared to adjust our plans as appropriate to support our goals.
• To help stabilize short-term funding markets, the Federal Reserve set up the Commercial Paper Funding Facility and the Money Market Liquidity Facility to stem rapid outflows from prime money market funds.
• Our Main Street Lending Program, which we are in the process of launching, supports lending to both small and midsized businesses.
• To support the employment and spending of investment-grade businesses, we established two corporate credit facilities.
• To help U.S. state and local governments manage cash flow pressures and serve their communities, we set up the Municipal Liquidity Facility.
• Congress has allocated nearly $3 trillion for corona virus-related economic aid and the U.S. central bank has pumped trillions of dollars of credit into the economy to cushion it from the fallout from the pandemic.

Previous Effect on Chart:
June 16, 2020 (1000 ET/1400 GMT) Powell’s Testimony Day 1
XAUUSD H1 High $1,730 and Low $1,716
June 17, 2020 (1200 ET/1600 GMT) Powell’s Testimony Day 2
XAUUSD H1 high $1,727 and Low $1,723

From the above chart, you can analyze the market movement during Powell’s testimony. On the day 1 of Testimony, Gold gave $15 movement in just one hour and relatively low movement in Day 2 of just $5.
Take a look and do trade wisely before the 3rd testimony.

Good Luck!