Fed Chair Warsh: No Compromise in Fighting Inflation

The DXY is trading at 100.79, down 0.35% in the last 24 hours. The RSI is approaching oversold territory at 38.8, while the MACD remains negative below the signal line. The price has fallen below both the 20-day and 50-day moving averages, indicating short-term weakness. Fed Chairman Warsh's statement that he will not compromise in the fight against inflation may reduce expectations of interest rate cuts, putting short-term pressure on the dollar. However, the low RSI level suggests that selling pressure could ease somewhat.

The headline confirms the Fed's hawkish stance, but the market has largely priced in this rhetoric. Technical indicators show RSI neutral at 50, MACD near zero and slightly positive above the signal line, indicating short-term direction uncertainty. The price is just above the 20-day SMA but below the 50-day SMA, increasing the likelihood of a sideways trend. With no clear catalyst in the short term, USDJPY is expected to fluctuate within its current range.

USDTRY is trading flat at 47.03, showing almost no change over the past 24 hours. The RSI stands at 51.45, indicating neutral territory, while the MACD remains slightly below its signal line, offering no clear short-term directional signal. Hawkish comments from Fed Chair Warsh could broadly support the USD, but USDTRY movements are typically more sensitive to local dynamics and TCMB policies. Technically, the 20-day and 50-day moving averages are close together, and the price is trading above these averages, though upward momentum is weak. As a result, no significant short-term direction is expected, with a high probability of range-bound movement.

Fed Chairman Warsh's statement that he will not compromise in the fight against inflation could weaken market expectations for interest rate cuts and negatively impact risk appetite. The NDX index has declined 0.5% in the last 24 hours, with the RSI at 52, indicating a neutral zone. Although the MACD line remains above the signal line, this news may increase selling pressure in the short term. While the index trading above the SMA20 and SMA50 provides technical support, the uncertainty generated by the news could lead to a slight pullback.