Powell: Politicization of the Fed Undermines Its Credibility

The DXY is trading flat at 99.05, with the RSI at 53.6 in neutral territory. The MACD line remains below the signal line, but the gap is narrowing, which could signal weak bullish momentum. The price is just above the 20-day SMA (98.99) and below the 50-day SMA (99.10), indicating a short-term equilibrium. Powell's remarks contained no unexpected surprises for the market and are likely perceived as a general emphasis on the Fed's independence. Therefore, the DXY is expected to remain within its current range (98.99-99.10) in the near term.

USDJPY is trading at 159.47, staying above its 20- and 50-day moving averages. The RSI at 63 maintains a bullish bias, while the MACD is in positive territory above its signal line. Powell's remarks on the politicization of the Fed could increase safe-haven demand for the dollar in the short term. However, the upside may be limited as the market may have already priced in this view.

The headline reflects Fed Chair Powell's concerns about politicization but does not contain a direct policy change or economic data. On the technical side, the RSI is approaching overbought territory at 73.8, increasing the likelihood of a short-term correction. The MACD remains positive and supports the uptrend, but the overbought signal suggests limited upside. The recent close with a 1.94% gain and price above the 20/50-day moving averages indicate a strong overall trend. Therefore, a sideways or slightly bearish trend can be expected in the near term.