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Aug 22, 2025
Powell, Trump to move markets tonight
Markets await signals and surprises
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The Impact of Today's Anticipated Speeches: Jerome Powell and Donald Trump - How Are Markets Preparing? Investors and traders around the world are focusing their attention today, Friday, August 22, 2025, on two major economic events expected to have a direct and significant impact on financial markets, particularly the US dollar, gold, stock indices, and oil. |
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First: Federal Reserve Chairman Jerome Powell's Speech – 6:00 PM UAE Time
Investors are awaiting the remarks of Federal Reserve Chairman Jerome Powell, as they may offer strong indications regarding future US monetary policy. His speech comes amidst uncertainty surrounding the Fed's approach to interest rates and inflation.
Powell is expected to address the following points in his speech:
- The Fed's assessment of the current US economic situation.
- Monetary policy trends during the fourth quarter of 2025.
- The extent to which inflationary pressures persist or decline.
- The likelihood of interest rates being adjusted or maintained unchanged.
Markets directly affected:
US Dollar (USD): Any hawkish tone (indicating a rate hike or maintaining rates for a prolonged period) will support the dollar. Dovish tone (indicating a rate cut) will pressure it.
Gold (XAU/USD): It often moves inversely to the dollar, making it a defensive asset if caution prevails in the markets.
US stock indices (US30 – USTEC): are highly sensitive to any change in monetary policy.
Other major currencies, such as the euro, pound sterling, and Japanese yen, will also be affected by changes in the value of the dollar.
Second: Former US President Donald Trump's speech – 8:00 PM UAE time
- Trump's speech is receiving special attention as he is one of the most prominent political figures influencing the US economy. Expectations indicate that he will address sensitive issues such as:
- His assessment of the performance of the US economy.
- Possible criticism of Federal Reserve policies.
- His vision for the future of elections and tax policy.
Although his speech may not be official from a government agency, markets attach special importance to it due to its ability to stimulate risk appetite and influence investor confidence.
Major assets affected by Trump's speech:
- Gold: As a safe-haven asset, it moves according to the intensity of statements.
- US markets: Any political or economic tension may lead to strong volatility.
- The dollar: May react quickly to any statements related to economic policies.
How to Deal with These Events – A Professional Trading Plan
Previous to the two speeches (until 5:30 PM):
- It is best to avoid opening long-term trades.
- Scalping is sufficient if there are clear opportunities.
- It is recommended to reduce risk and close most trades before the news.
During the two speeches (from 6:00 PM to 8:30 PM):
- Live trading is not recommended at all.
- Initial "fakeouts" are common, so quick reactions should be avoided.
- It is best to wait 15-20 minutes after the speeches and confirm the new trend before making a trading decision.
After the two speeches (starting at 8:30 PM):
- Confirmed trades can be entered after the trends become clear.
- It is recommended to use technical analysis to confirm entry points (such as a break of resistance or support).
- Ensure that technical signals (such as MACD, RSI, and momentum) are consistent with the price action.
Final Recommendations
- Define entry and exit points in advance.
- Adhere to a capital management plan.
- Don't be driven by emotions during major events.
- Use stop-loss orders carefully.
- Don't enter trades out of fear or greed.
In conclusion, this day represents a real opportunity for skilled traders who are adept at reading economic data and linking it to technical movements. However, any haste or excessive risk-taking can backfire. Calmness, sound analysis, and discipline are the keys to success on such pivotal days.