Fed's Waller Cautious on Rate Cuts Due to Inflation Risk

The cautious statement from a Fed member could be supportive for the DXY by reinforcing the perception that interest rate cuts may be delayed or slower. Indicators show that the DXY remains technically weak, closing below both the 20-day and 50-day moving averages, with the RSI at 41.5. However, the MACD is above the signal line and in negative territory, suggesting that downward momentum may have slowed. In the short term, the hawkish tone of the news could lead to a limited recovery in the dollar despite technical weakness.

The headline indicates that the Fed is adopting a cautious stance toward interest rate cuts. This could imply a less supportive monetary policy than markets anticipated, potentially creating pressure in the short term. Technically, the RSI is approaching overbought territory at 69, and the MACD is below its signal line, suggesting momentum may be weakening. However, the price remains above both the 20- and 50-day moving averages, indicating the overall trend remains upward. Therefore, any reaction is likely to be limited and temporary.

The headline indicates the Fed is adopting a cautious stance regarding interest rate cuts. This could lead to a short-term correction by managing market expectations. Technically, the RSI approaching the 69 level signals an overbought zone, and the MACD remains below its signal line. However, the closing price being above both the SMA20 and SMA50 suggests the overall trend remains upward. Therefore, the reaction may be limited and temporary.

The news indicates that the Fed is adopting a cautious stance toward interest rate cuts, which could have a short-term negative impact on non-yielding assets like gold. GLD's technical indicators are mixed; the RSI is in neutral territory and the price is slightly below the SMA20. However, the MACD is below the signal line, suggesting weakening momentum. The Fed's signal of keeping rates higher for longer could create selling pressure on gold, so a slight decline can be expected in the short term.