The results of the speech of the US Federal Reserve Chair

The first of two speeches by US Federal Reserve Chairman Powell turned out to be very restrained, that caused a slowdown in the American dollar’s recovery across the whole market’s spectrum. In his rhetoric, Mr. Powell was very restrained and noted that the Fed continues to adhere to the plan of tightening monetary policy. Afterwards, he added that low wage growth rates don’t contribute to inflation, despite the latest published positive statistics.

As a result, this speech can be regarded as a reservedly negative, as the expectations regarding him were more positive. This speech also could give rise for turn the dollar index, which confirms the growth of the US state bonds yield and the achievement of the dollar index resistance of 94.80.

The US dollar index chart. The current price is 94.70 (10-year government bonds yield is a blue line)

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Hanzenko Anton