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DXY - Fed Chairman: 'Inflation is still too high'Federal Reserve Chairman Jerome Powell said that although inflation has cooled, the Fed remains committed to achieving its 2% target. In a speech in New York on October 19, Chairman Jerome Powell acknowledged that tightening policy had brought inflation back under control, but stressed that the Fed must remain cautious in pursuing its goals. . “Inflation remains too high. A few months of positive statistics are just the beginning of giving us confidence that inflation will return to target. But it remains to be seen how long these positive numbers will last, or how inflation will fare in the coming quarters. I don't know yet whether that will happen." He reiterated that Fed officials are "unanimously committed to bringing inflation down to 2%." The speech raises questions about the Fed's future policy after a series of consecutive interest rate hikes. The Fed has raised interest rates 11 times since March 2022, and the current interest rate is 5.25%. This is the highest level in 22 years. However, Chairman Powell believes that current interest rates are not too high. "Are the guidelines too strict? I don't think so," he said, but acknowledged that "rising interest rates are making things difficult for everyone." The Fed also highlighted recent good progress on its goals. The inflation rate as of September was 3.7%, a significant drop from over 9% in the middle of last year. "The latest figures show progress on both our goals of maximum employment and price stability. The economy remains in very good shape." But the comments came on the same day as reports showed the number of people applying for unemployment benefits last week was the lowest since the start of the year. This indicates that the labor market is tightening, which could put upward pressure on inflation. In recent days, a number of Fed officials have said the Fed may temporarily pause rate hikes. Even the most pro-tightening members expect the Fed to wait for further economic impact from its last rate hike. The market now expects the Fed to halt rate hikes, at least for now. The question is when will they start cutting interest rates? “If the environment remains risky and uncertain, we will be more cautious. The Fed will make decisions based on upcoming data, prospects and risks,” Powell said.
TVC:DXYLong
by TheLeader_WOLF
All eyes are on the Fed's keynote speech Federal Reserve Chairman Jerome Powell is scheduled to deliver a major policy speech on October 19th. The aim is to convince the market that the relevant central banks will continue to keep the inflation regime in check, but perhaps not, and that there will be some "easing" going forward. The first monetary policy plan was submitted to the New York Economic Club as the U.S. economy faces many pressing issues. Inflation has improved recently, but U.S. Treasury yields are rising, sending mixed signals about the direction of monetary policy. While most markets expect the Fed to keep interest rates on hold, they still expect Powell to confirm and clarify officials' views on the current situation and long-term trends. Luke Tilley, chief economist at financial services firm Wilmington Trust, said Chief Executive Officer Powell continues to talk about inflation risks given the strength of the economy and unexpected consumer spending in the third quarter. I predict that. Essentially, chief economist Tilley expects Powell's message to be divided into three parts. First, the Fed had to raise rates quickly, and they did. Next, the Fed needs to set a maximum interest rate, which is at the heart of the debate. And finally, we need to figure out how long interest rates need to stay at this high level to bring inflation down to our 2% target level.
TVC:DXYLong
by TheLeader_WOLF
DXY 4HR Analysis - No Sign of a Reversal! Bull Channel ContinuesDXY refused to fall below 4HR 200EMA support last week and had a fantastic bounce to the upside. This bounce solidified the current bull channel we are in, with no sign of a reversal in sight. There is currently a gap between 106.672 and 109.000, which is the next weekly resistance zone noted from July 2022. How do we trade this? Probability shows that breakouts are roughly 10% of price action on the charts. Until we see a bear breakout of this channel, we should remain long. Trade Strategies: Swinging For a swing trade, long it if the price action is in the bottom 20% of this channel and place your stop loss a few pips below the 4HR 200EMA. This gives you at least a 1:2 Risk/Reward ratio where you can take partial or complete profits (depending on your strategy). I placed an example long in this chart, an opportunity that has already passed. Scalping You can also scalp your way to victory, but this requires you to lower your reward and increase your risk to gain probability of a profit. The proper stop of the 4HR chart is below the 200EMA or at least, below the bull channel bottom by a handful of PIPs. The further away you enter from that stop, the smaller your position size should be such that your total loss is the same as your 1:2 Risk/Reward ratio. The Math If we're applying the 2% rule in trading, meaning you cannot lose more than 2% of your total account equity on a single trade and your total equity is $10,000, then your maximum allowed loss is $200. Your position size should always be relative to your maximum loss which is determined by where your stop loss is placed. This means a scalp at a 2:1 Risk/Reward ratio provides a profit of $100 at risk of losing $200. In a bull channel, the probability is on your side. If you took 10 trades scalping and won 8 out of 10 trades using this math, you would be up $400. Using the Swing strategy, your probability is lower at the bottom of the channel, but your potential reward is greater, and your risk is lower($200 Reward and $100 Risk). If you won 5 out of 10 trades, you would be up $500. As always, trade at your own risk, you are responsible for your trades, and I hope this information was helpful. Trade wisely and let us know what you think in the comment section below!
TVC:DXYLong
by TraderEngineering
DXY still shows no signs of breaking out of the trendlineThere has been little change in the market since the minutes of the Fed's monetary policy meeting were released in September. This highlighted concerns about U.S. economic growth and caused the Fed to become cautious about raising interest rates. Dallas Fed President Rory Logan and Fed Director Christopher Waller have argued that rising U.S. Treasury yields in recent months could prompt the Fed to hold off on raising interest rates. Waller said on October 11 that higher market interest rates could help the Fed control inflation and allow policymakers to consider whether further rate hikes are necessary. "Overall, the minutes indicate that Fed officials are increasingly concerned about recession risks to the U.S. economy," said Carl Schamotta, chief market strategist at Kopay in Toronto. The recent weakness in the US dollar is due to a decline in US Treasury yields, with bond prices rising due to the Fed's "loose" stance on future interest rate hikes. Investors are now awaiting the release of the main inflation report today, October 12th, for further guidance on the future direction of interest rates. Additionally, the market is closely monitoring the conflict between Israel and the Islamic organization Hamas. Conversely, the euro rose to $1.0634, its highest level since September 25th. Meanwhile, the pound rose to a three-week high of $1.2337. Dutch central bank board member Klaas Nott said on October 11 that the ECB has made "important progress" in bringing inflation down to its target level, but there is still a long way to go and rules out the possibility of inflation rising. He said he could not. Interest rates may rise further in the future.
TVC:DXYShort
by TheLeader_WOLF
DXY Index will Go Down to 🟢Heavy Support zone🟢(1-Hour)⏰✅The DXY index managed to break the Uptrend line and 🟢 Support zone 🟢. 💫Currently, DXY reacted well to the Resistance line and formed a 💫Shooting Star Candlestick Pattern💫 near this line in the 1-hour time frame ⏰. 🔔I expect the DXY to trend lower in the coming hours , enter the 🟢 Heavy Support zone 🟢, and fall to at least the 🟡 Price Reversal Zone(PRZ) 🟡. U.S.Dollar Currency Index ( DXYUSD ) Analyze, 1-hour time frame⏰. Do not forget to put Stop loss for your positions (For every position you want to open). Please follow your strategy; this is just my Idea, and I will be glad to see your ideas in this post. Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
TVC:DXYShort
by pejman_zwin
27
USD is showing positive signals amid tensions in the Middle EastEarlier this week, the safe-haven dollar strengthened against the euro as military clashes between Israel and the Palestinian Islamic militant group Hamas raised concerns that the conflict could spread beyond Gaza. However, the dollar weakened against other major currencies. Yesterday, Israeli Prime Minister Benjamin Netanyahu said Israel's response to the multi-pronged attack by Palestinian armed groups from Gaza would "transform the Middle East." Risk sentiment is fragile as Israel announces it is mobilizing 300,000 reservists and imposing a complete blockade of Gaza amid potential attacks in response to weekend attacks by Hamas. Fed member Bostic told the American Bankers Association that even if the Fed raises interest rates to slow the economy while keeping inflation in check, there is no prospect of a recession. Joseph Trevisani, a senior analyst at FX Street in New York, said Bostic's response comes amid the eruption of conflict in the Gaza Strip. Analysts also said the decline in U.S. yields initially reflected comments from Fed officials that there may not be a need for further rate hikes given the rise in long-term yields, and the port sector becoming a safe-haven asset following a monetary policy clash. He said this was due to comments from traders who were looking for. Hamas and Israel. Traders are currently waiting for key US inflation figures to be released today, October 11th. Investors are also keeping an eye on developments surrounding the conflict between Israel and the Palestinian Islamic group Hamas.
TVC:DXYLong
by TheLeader_WOLF
1
DXY will Fall by Head and Shoulders Pattern⏰(1-Hour)⏰✅The DXY Index has managed to form a Head and Shoulders Pattern in the 🔴Resistance zone🔴. 🔨DXY broke the 🟢 Support zone 🟢 and Neckline hours ago. 🔔I expect DXY to start falling again to 🟡 Price Reversal Zone(PRZ) 🟡and Uptrend line after completing the pullback to Neckline . U.S.Dollar Currency Index ( DXYUSD ) Analyze, 1-hour time frame⏰. Do not forget to put Stop loss for your positions (For every position you want to open). Please follow your strategy; this is just my Idea, and I will be glad to see your ideas in this post. Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
TVC:DXYShort
by pejman_zwin
36
DXY - 02/10/23TVC:DXY - 02/10/23 **Trade setup:** Still looks very bullish, but the X in green is telling me the trend is getting weaker! Coming into a SUPPLY zone made in DEC so were getting stopped here but looking to break out of it on the day chart! If we can get above here it will take out the two red imbalances from last NOV and try the high at $114, this is running with BTC atm so a pullback here will probably mean worse for BTC! I will be looking for the high to be broken to trade higher here and looking for a pullback! Now the targets are below: **Bullish target:** $109 then $111 to clear out imbalance if broken at $106 **Bearish target:** $103 if we fail to make a new high and break above $106 **Supply and Demand**: The nearest Demand to keep us up is $100. The next Supply is $114.
CAPITALCOM:DXY
by mikey_s_trades
Celebrating the Soaring US Dollar and Its Impact on Oil and the The US dollar has been on an impressive rise, leading to a remarkable domino effect on the oil market while simultaneously lowering the Euro. Let's dive into the details and explore the exciting opportunities this presents for all of us! First and foremost, let's celebrate the recent surge in the US dollar. This upward trajectory has been fueled by a combination of robust economic indicators, positive investor sentiment, and the Federal Reserve's commitment to maintaining a stable currency. As traders, we understand the significance of a strong US dollar, and it's time to capitalize on this favorable trend! The rising US dollar has an immediate impact on the oil market, as it becomes more expensive for countries with weaker currencies to purchase oil. This translates into increased demand for the US dollar in oil transactions, further driving up its value. So, let's keep an eye on the oil market and identify potential trading opportunities that can be leveraged to our advantage. Simultaneously, the Euro has experienced a decline against the US dollar. This can be attributed to various factors, including economic uncertainties, political developments, and the divergence in monetary policies between the European Central Bank and the Federal Reserve. As traders, we can seize this opportunity to capitalize on the Euro's weakness and further strengthen our positions in the US dollar. Now, let's move on to the call-to-action! I encourage each and every one of you to continue to long the US dollar, as it shows no signs of slowing down. By strategically aligning our trading decisions with this ongoing trend, we can maximize our profits and achieve extraordinary success in the currency markets. Remember, timing is crucial in the world of trading, and the current market conditions are ripe for us to make a significant impact. Stay informed, keep a close eye on the latest economic news, and utilize the tools at our disposal to make well-informed trading decisions. As always, I am here to support and guide you on this exciting journey. If you have any questions, need assistance, or simply want to share your success stories, please don't hesitate to comment. Let's make the most of this golden opportunity and continue to thrive in the world of trading! Wishing you fruitful trades and abundant profits!
TVC:DXYLong
by bryandowningqln
Dollar Under Pressure as Japan and China Defend Their CurrencyIntroduction: In recent times, the US dollar has faced increasing challenges as both Japan and China take measures to defend their respective currencies. This shift in global dynamics has raised concerns among traders and investors who heavily rely on the US dollar as their primary asset. However, this situation also presents an opportunity for us to reassess our investment strategies and consider diversifying our portfolios. In this article, we delve into the current state of the US dollar, the actions taken by Japan and China, and why it's time to consider allocating less to the US dollar. The US Dollar's Vulnerability: For decades, the US dollar has held its position as the world's primary reserve currency. However, recent economic developments have put pressure on its supremacy. Japan and China, two of the largest economies globally, have taken proactive steps to defend their currencies, challenging the US dollar's dominance. Japan's commitment to maintaining a weaker yen and China's efforts to stabilize the renminbi have created a more balanced global currency landscape. The Rise of Japan and China: Both Japan and China have demonstrated their determination to protect their currencies. Japan's monetary policies, such as negative interest rates and quantitative easing, have contributed to a weaker yen, boosting its export competitiveness. China, on the other hand, has implemented measures to stabilize the renminbi, preventing excessive depreciation and promoting stability in international trade. The Benefits of Diversification: While the US dollar remains a significant player in the global economy, recent events highlight the importance of diversifying our investment portfolios. Allocating less to the US dollar and exploring alternative currencies can provide numerous benefits, including: 1. Reduced Risk: Diversification allows us to spread risk across different currencies and economies, mitigating the impact of any potential downturn in the US dollar. 2. Increased Opportunities: By diversifying, we gain exposure to emerging markets and currencies that may offer higher growth potential, providing us with new investment opportunities. 3. Enhanced Resilience: A diversified portfolio is more resilient in the face of currency fluctuations, economic uncertainties, or geopolitical events, ensuring our investments remain stable over the long term. 4. Improved Returns: Diversification helps us capture the potential gains from different currencies, reducing the reliance on a single currency's performance. Call-to-Action: Embrace Diversification Today! As traders, we have the power to adapt to changing market conditions and seize opportunities when they arise. The current scenario, with Japan and China defending their currencies, presents an ideal moment to reassess our investment strategies and allocate less to the US dollar. Consider exploring alternative currencies such as the yen or renminbi, which offer potential benefits and diversification advantages. Additionally, explore other investment avenues like emerging markets or commodities, which can further enhance the resilience and growth potential of your portfolio. In conclusion, let us embrace this shift in global dynamics as an opportunity to diversify our portfolios, reducing our reliance on the US dollar. By embracing diversification, we position ourselves for greater resilience, increased opportunities, and improved returns. Now is the time to act and adapt our investment strategies to navigate the evolving global currency landscape successfully.
TVC:DXYLong
by bryandowningqln
1