US dollar companies despite recession Chat from Fed Chairman Powell. Will the USD get higher?

US Dollar, USD, Fed, Powell, USD / JPY, Nakao, AUD, NZD, Crude Oil – Talking Points

  • The US dollar has held up despite talk of recession
  • Risk related currencies was hit, but the stock markets are undamaged
  • The Fed chairman must testify again today.Will he moves USD?

The US dollar has stabilized in the wake of Fed Chairman Jerome Powell’s testimony to Congress.

He acknowledged that the recession “is certainly an opportunity” and said that recent events have “made it harder to achieve what we want, which is 2% inflation and still a strong labor market.”

He also said the chances of achieving a soft landing for the economy were “very challenging.” Government interest rates were lower across the curve.

All recession talk sent growth-related currencies lower with the Aussie and Kiwi hit hardest.

Crude oil was sent for packaging, the WTI futures contract is close to 104 barrels, while the Brent contract is under 110 barrels. Gold is stable, just over $ 1,830 per barrel. ounce.

APAC stocks are mostly in the green to some degree today, with the notable exception being the growth-sensitive Kosdaq index, down about 2.5%.

Elsewhere, the USD / JPY declined former Japanese Deputy Minister of International Affairs Takehiko Nakao said the current level of the Yen was not good for Japan’s economy. He said the prospect of intervention “should not be eliminated.”

Looking ahead, there are a number of European PMIs coming out, as well as a number of ECB speakers. Fed Chairman Powell will also testify again later.

The full financial calendar can be viewed here.

US Dollar Technical Analysis

The US Dollar Index (DXY) remains above a rising trend line and above 21-, 55- and 100-day highs simple moving averages (SMALL) but below 10-day SMA.

This could indicate that bullish momentum is pausing. If the price crosses back over the 10-day SMA, a bullish momentum may develop. All periodic SMAs have a positive gradient and this can support bullish momentum.

The resistance could be at the most recent peak of 105.79. On the downside, support may be at last week’s low of 103.42 or lower at 101.30 in May.


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— Written by Daniel McCarthy, Strategist for Technewscity

To contact Daniel, use the comment box below or @DanMcCathyFX on Twitter