Powell handed down a grim economic assessment | 14 May 2020

GBPUSD trading plan:

Chairman Powell firstly poured water on the prospect of negative interest rates from the Fed, saying that the evidence the policy is effective is marginal. Secondly, he stated that the post-virus growth and recovery would be lower for longer. Thirdly, and in my mind, much more importantly, he urged the Federal Government to enact more fiscal support and set aside bipartisanship to get the job done. Powell handed down a grim economic assessment during his speech; warning of a “significantly worse” U.S. recession than any downturn since World War Two as the COVID-19 virus continues to wreck economic havoc globally.

Trading recommendation: range 1.2150 -1.2250.