According to Richard Franulovich, head of FX strategy at Westpac, Chair Powell’s remark that interest rates are “just below” the range of estimates for neutral does not seem revelatory with Fed Funds being just one hike from reaching the bottom end of the 2.5%-3.5% dot plot range. Key Quotes “But it is nevertheless a marked departure from his Oct 3 comments when he said, “we may go past neutral, but we’re a long way from neutral at this point, probably”. Powell’s observation that the impact of rate hikes is, “uncertain”, and that, “we will be paying very close attention to what incoming economic and financial data are telling us”, echoing Clarida’s “data dependence”, add to the caution.” “The data continues to cool too; the 9% fall in new home sales and softer detail in the Dallas & Richmond PMIs this week add to the impression the US is downshifting after the break neck pace of 3.9% in Q2 and Q3.” “Until the Fed sheds its more cautious tone and the data stabilise we shift to a negative week and month ahead USD bias, though maintain a bullish 3mth outlook, with the Fed likely to ultimately deliver more than what’s priced in.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY Technical Analysis: Set-up points to extension of the corrective slide ahead of FOMC minutes FX Street 4 years According to Richard Franulovich, head of FX strategy at Westpac, Chair Powell's remark that interest rates are "just below" the range of estimates for neutral does not seem revelatory with Fed Funds being just one hike from reaching the bottom end of the 2.5%-3.5% dot plot range. Key Quotes "But it is nevertheless a marked departure from his Oct 3 comments when he said, "we may go past neutral, but we're a long way from neutral at this point, probably". Powell's observation that the impact of rate hikes is, "uncertain", and that, "we will be paying very close attention to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
