Market Analysis

Dollar trading lower after Powell’s speech


The US dollar index is trading lower this morning, as the markets price-in the remarks made by Jerome Powell, during the press conference that followed the announcement of a 75 basis points rate hike late on Wednesday. The rate hike itself was widely expected and already baked into the value of the dollar; the remarks made by Mr. Powell were not. When pressed, the Chairman of the Fed admitted that from this point onwards, the Fed’s actions will be data dependent; this means a shift in the central bank’s stance, with the tacit admission that the pace of tightening will slowdown in the runup to the end of the year. The markets responded immediately, with risk assets such as shares and bitcoin finding the front foot and recording substantial gains, while the US dollar, which until now had been propped up by the Fed’s hawkishness, dropped to the lowest level in three weeks.

Source: ActivTrader


The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.

All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.

Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.