Fed Chairman Warsh: High Inflation Is Unacceptable

Fed Chairman Warsh's emphasis that high inflation is intolerable has increased expectations for tight monetary policy in the future. This could strengthen the USD, potentially leading to a short-term rise in the DXY. However, the current RSI of 29 and negative MACD indicate oversold conditions, suggesting a gradual recovery rather than an immediate move.

Federal Reserve Chairman Warsh's hawkish stance on inflation could increase downward pressure on USDJPY. Although the RSI is approaching oversold territory at 32, the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, indicating short-term weakness. Selling pressure is likely to persist following the news, but the pace of decline may be limited due to oversold conditions.

Although the news points to a tight stance in the fight against inflation, GLD's RSI at 29.6 is in oversold territory, which is generally interpreted as a short-term bullish signal. Despite the MACD being in negative territory, the price being above the 20- and 50-day moving averages (4079.58 vs 374 and 376) confirms a strong uptrend. The 1.97% increase in the last 24 hours may indicate that selling pressure is easing and buyers are returning. However, the Fed's hawkish stance could weigh on gold prices, posing a risk that the rally may remain limited. In the short term, expectations of a technical recovery prevail.