Fed's Hammack: Rate Cut Signal No Longer Appropriate

The news could be considered a negative surprise for the market as a Fed official tempered expectations for interest rate cuts. With the RSI on the SPX at an overbought level of 78.8, the likelihood of a short-term correction or profit-taking increases. Although the MACD remains bullish, the overbought conditions and the negative sentiment generated by the news may lead to a slight pullback in the index. However, given the strong trend, any decline is expected to be limited.

The NDX is in overbought territory with an RSI of 84.8, increasing the risk of a short-term correction. The Fed's statement that the interest rate cut signal is not appropriate could dampen market optimism. Profit-taking may occur following the 3.1% rise in the last 24 hours. Although technical indicators point to a strong uptrend, overbought conditions and the negative sentiment from the news could trigger a downward move in the short term.

The DXY is trading below its 20- and 50-day moving averages, with the RSI in weak territory at 40. The MACD is below the signal line and in negative territory, indicating short-term downside momentum. Although the Fed's statement that a rate cut signal is not appropriate could support the dollar, the weakness in technical indicators prevails. Therefore, a downward move is expected in the short term, though the impact of the news may be limited.

USDTRY is trading above its short-term moving averages (SMA20 and SMA50), with the RSI at 58, maintaining a bullish bias. The MACD line is above the signal line and in positive territory, indicating upward momentum. News that a Fed official does not find a rate cut signal appropriate could support the dollar, creating upward pressure on USDTRY. However, the change over the last 24 hours is very low (0.05%), suggesting the upside may be limited. Overall, technicals and news flow support a slight bullish bias in the short term.