Deutsche Bank: Fed's Hawkish Stance and High Valuations Overshadow Iran Deal Relief

The DXY is trading above the 101.00 level and remains above its 20- and 50-day moving averages. The RSI at 61 maintains a bullish bias but has not yet entered overbought territory. Although the MACD line is below the signal line, it remains in positive territory, indicating weakening momentum without a bearish signal. Headlines suggest the Fed's hawkish stance will persist, potentially supporting the DXY. In the short term, upward movement may continue, but elevated valuations and geopolitical developments offer limited upside potential.

USDJPY is trading at 161.70, remaining above its 20- and 50-day moving averages. The RSI at 59 maintains an upward trend, while the MACD is in positive territory above its signal line. Deutsche Bank's emphasis on the Fed's hawkish stance stands out as a supportive factor for the dollar. However, the fading of the Iran deal relief may reduce geopolitical risks, potentially limiting yen demand. In the short term, the upward movement is expected to continue, but caution is warranted as the pair approaches overbought territory.

The news headline indicates that the Fed's hawkish stance and high valuations are overshadowing a positive development (the Iran deal). This could create short-term pressure on the market. Technically, the SPX closed just below its 20-day moving average (7496) and has fallen below the MACD signal line. Although the RSI is neutral at 50.6, the price slipping below the 20-day average signals weakness. The 0.85% decline in the last 24 hours also confirms selling pressure. Therefore, a downward movement can be expected in the short term.

The news headline indicates that the Fed's hawkish stance and high valuations are overshadowing a positive development such as the Iran deal. This could create pressure on the market. In technical indicators, the RSI is at 60, not yet approaching overbought territory, but the MACD being above the signal line points to a short-term upward trend. However, the 0.43% decline in the last 24 hours and the negative tone of the news suggest that a downward movement is more likely in the short term. Although being above SMA20 and SMA50 supports the medium-term trend, the news impact may dominate in the short term.