Fed Q&A testimony has begun:
- Level for rates and speed of hikes are separate
- It may make sense to move rates higher, at more moderate pace
- Fed is now moderating the pace of rate hike’s
- banking regulation should be transparent, consistent not too volatile
- capital is central to banking regulation
The dollar is starting to move lower. The testimony has been rather subdued so far. The Fed chair did imply a slowing of the pace of hikes which is consistent with the skip seen at the last meeting.
The EURUSD has extended to new session highs. The trading range has increased to 51 pips versus 28 pips. The average of the last month has been around 68 pips. The GBPUSD is also moving higher and away from its 200 are moving average 1.26852. The USDCHF that is just broken below its 100 are moving average of 0.89534.
- Our US banks are strongly capitalized
This article was written by Greg Michalowski at www.forexlive.com. Source