FOMC Statement and DXY Path Ahead
  • 15 December, 2023 Ruchit Thakur

FOMC Statement and DXY Path Ahead

This Wednesday on 13th December 2023 Fed announced the last monetary policy of 2023 and market participants widely anticipated the policy maker to leave the rate unchanged at 5.25%-5.50%.

Federal reserve speaker or chairman Jerome Powell explains the decision to leave the policy rate unchanged and responds to questions in the post meeting press conference. He mentioned that inflation has eased without significant increase in unemployment data. He also added that the FOMC committee is fully committed to returning inflation back to 2% and the FOMC committee significantly tigented monetary policy.

Federal Reserve chairman Powell also mentioned that lower inflation readings over the last several months are welcome and we are anticipating the progress of getting inflation to 2% will take some more time. While the committee believes policy rate is likely at or near its peak for this cycle and will keep policy restrictive until confident on a path to lower inflation.  

After his speech #DXY ( Dollar Index ) cracked from 103.90 to 102.84 odd levels and showed weakness. 

 

 

#DXY Path Ahead :  Dollar index came down sharply post breaking 105.50 zone and came down towards 102.50 zone post FOMC statement about rate cut in 2024. 

Now downside 101.90-102 is strong support for #Dollar #Index and also #RSI starts showing demand as it's making higher highs. I am expecting #DXY to take support around 101.90-102 zone and upside is open again towards 105.50-106 zone.

 

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