Dollar rally solidifies after Fed Chair Jerome Powell indicates in the post meeting press conference that, today’s rate cut is a “mid-cycle” adjustment of policy. He further clarifies later that he was “contrasting with the beginning of a lengthy cutting cycle”. Fed will keep on monitoring the risks from global slowdown, trade, domestic growth and inflation, in adjustment of future policy path. However, today’s cut , as Powell hints, doesn’t guarantee and imply there will be further rate cuts ahead.
EUR/USD drops through 1.1107 key support decisively, after recovery was rejected by falling 4 hour 55 EMA. The pair was also rejected well by 55 week EMA too. Down trend from 1.2555 is resuming and next medium term target will be 78.6% retracement of 1.0339 to 1.2555 at 1.0862.
In the stock markets, DOW dives sharply and hits as low as 27812.62. It’s currently down around -1.1%, or -300 pts.
