Fed’s Hammack: Rates Will Stay Steady for the Long Term

Fed's Hammack stating that interest rates will remain steady for an extended period is signaling a less tight monetary policy to the markets. This situation could lead to a short-term weakening of the DXY as investors may reduce dollar demand in anticipation of lower returns. Technical indicators also support this trend: RSI at 39, MACD negative, and price below the 20/50 SMAs. However, it is necessary to consider that the movement may not be entirely downward due to market volatility and other macro factors. Therefore, in the short term, the DXY is likely to experience a slight decline or follow a neutral trend.

Hammack’s statement that the Fed will keep long‑term rates steady cuts expectations for future rate hikes in the market. This could lead to a short‑term weakening of the USD, and as a result, a modest upside for USD/JPY is anticipated. However, the certainty of this move may be limited by other macro data and geopolitical developments. Investors are advised to pay particular attention to the JPY’s potential appreciation over the next one to three days.

Fed official Hammack’s emphasis that rates will remain elevated for an extended period could support the USD against the TRY. High inflation in Turkey and the central bank’s tightening stance may trigger a depreciation of the TRY. Technical indicators show the RSI at 63.4, indicating overbought territory, while the MACD is near negative, suggesting a modest short‑term rise in the USD/TRY. However, if market participants have already priced in this news, the impact may be limited. Overall, the USD/TRY is expected to exhibit a slight upward move over the next 1–3 days.

This could boost demand for risk‑off assets such as gold. GLD’s technical indicators support an uptrend: price above SMA20 and SMA50, MACD above the signal line, and RSI above 50. A modest rise is expected in the short term over the next 1‑3 days.