Chicago Federal Reserve chair, Austan Goolsbee spoke today on US monetary policy. We can read his remarks as rather dovish, looking at the tone of previous Fed members however the basis of the commentary was similar: closely observing incoming data and likely rate cuts if inflation progress continues.
Goolsbee of the Fed
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If we continue to make progress on inflation, we need to take that into account in the interest rate.
- The Fed does not face an immediate inflationary threat from the labor market.
- If inflation progress reverses, it may merit rate increases.
- Commodity price inflation is returning to normal levels, and there is surprising progress in services inflation.
- Markets should focus on economic data
- We need to see more progress on housing inflation.
- Commodity price inflation is returning to normal levels, and there is surprising progress in services inflation.
- Falling inflation opens the door for interest rate cuts, but incoming data will shape the path of rates.
EURUSD (M15)
The chart of the Eurodollar shows a continued sellers' advantage (supply volume = input vs. output). Bulls are trying to react in the 1.088 zone, where we see the average SMA200 on the M15 interval.
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Source: xStation5
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