Fed Chair Powell is due to speak about the economy, inflation and employment at the Brookings Institution at 6:30 pm GMT. He will likely take the opportunity to reiterate the slowing of rate hikes to 50bps after four 75bps increases. However, he is also likely also to emphasise the fight against inflation. A tighter policy will continue until the Fed has managed to reign inflation in.
Ahead of the delivery, FXCM's USDOLLAR basket is slipping into its daily chart's bearish area between the lower blue and red bands. The hourly chart (on the right) shows both the EMAs and stochastic in bearish mode (black ellipses). If the momentum indicator continues to push into its lower quintile (blue arrow), an underlying bearish momentum will be building.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.