Dollar rises broadly after Fed’s “hawkish” rate cut, with projections and dot plot signaling that the “mid-cycle” adjustment is completed. The rally is trying to gather steam after Fed chair Jerome Powell’s “balanced” press conference. Most importantly, he noted that the rate are not on a pre-set course, which is clearly seen in the decision today. While today’s cut is insurance again uncertainties, economic outlook remains favorable.
Overall reactions from the markets are relatively “mild” indeed. DOW is currently down just around 0.5%. 10-year yield is down -0.030 at 1.78. There is no committed buying in Dollar yet 0.9975 resistance in USD/CHF and 0.6807 support in AUD/USD will be immediate focuses.
Additionally, spot gold is worth a watch to confirm Dollar’s upside momentum. break of 1479.56 resistance will complete a head and shoulder top pattern. And in that case, deeper fall would be seen back to 1400.53 structure support, at least.