US Dollar and the Fed: Buy the Rumor Sell the News?
2023.09.20 04:15
Finally, an important day has arrived when FED may give us more details if they are going to stay on pause for a while or if there will be more hikes needed in the future. Looking globally, inflation is still here; it was up in Canada yesterday and slightly down in the UK reported today, but still far away from their inflation goals.
That said, inflation remains a global problem so seeing on the rise with US yields is normal. But as I said so many times, potential future hikes can be priced in if we consider a rebound in yields and the dollar over the last two months. Looking at the Dollar from a technical perspective, it can be a fifth wave, making an ending diagonal so strong resistance may not be far away. This is a bearish pattern, so I am aware of a limited upside if the price approaches March levels.
