USDOLLAR is bid ahead of Fed Chair Powell’s Senate testimony
FXCM's USDOLLAR basket is bid ahead of Fed Chair Powell's testimony to the Senate today at 3:00pm GMT. In February, Powell acknowledged the start of the disinflation process, but since then, data has come in hotter than expected.
The markets have priced in 25 bps for March, May and June. The market will listen for any hints on rate hikes and the terminal rate, but it is unlikely that he will push back much today. In the Fed minutes for the previous meeting, it said that "A few participants stated that they favoured raising the target range for the federal funds rate 50 basis points at this meeting." It will be interesting to hear if the Fed is open to 50bp in the future.
The hourly stochastic has made its way to its upper quintile (blue arrow). The longer it maintains this position, the better the chances of further USDOLLAR price appreciation.
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Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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