BREAKING: US100 surges, USD plunges following Powell comments

The US dollar weakened while equites moved  higher after Fed Chair Powell  dovish comments. During his speech at the Brookings Institution, Powell  said:

• Policy will most likely need to remain restrictive for some time.

• It makes sense to moderate pace of interest rate increases.

• The time to slow the pace of rate hikes could come as soon as the December meeting.

•  Have made significant progress toward a sufficiently restrictive policy, but still have much ground to cover.

•  It seems to me probable to me rates need to ultimately go somewhat higher than policymakers thought in September

• October inflation data was a welcome surprise, but it will require much more evidence to give reassurance that inflation is actually dropping.

• We estimate that the PCE price index rose 6% in the 12 months to October, core PCE rose 5%.
• The route ahead for inflation is very uncertain.
•  Economic activity growth has slowed to well below the longer-run trend, and this must be maintained.

US100 broke above the local downtrend line and is currently testing a major resistance zone at 11700 pts. Source: xStation5

GBPUSD erased early losses and once again approached resistance at 1.20. Source: xStation5