News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
More View more
Real Time News
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here:
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge:
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:
  • The Australian Dollar may be at risk of losses against the New Zealand Dollar after an unexpectedly high NZ inflation reading sent AUD/NZD towards challenging short-term rising trend support. Get your $AUD market update from @ddubrovskyFX here:
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here:
USD Undecided After Fed Hikes Rates to 2.00%-2.25%, Powell Speech

USD Undecided After Fed Hikes Rates to 2.00%-2.25%, Powell Speech

Peter Hanks, Analyst

Talking Points:

  • Fed Funds futures had the probability of a 25 basis point hike at 99% heading into today’s decision
  • Chairman Powell believes economy is strong and inflation should remain at 2% target in the future
  • Fed officials removed ‘accommodative’ from language regarding rates

Markets have eagerly awaited the Federal Open Market Committee’s interest rate decision to drive action this week, and it delivered. Expectedly, Wednesday saw the Fed hike interest rates 25 basis points to a range of 2.00% to 2.25%. The hike falls in line with the Fed’s ‘gradual and accommodative’ stance they have maintained in recent quarters. Further, Fed Funds futures had the probability of a hike at 99% so markets were relatively unfazed as the decision crossed the wires.

Not much was changed in the minutes of September’s meeting except the Fed’s decision to remove ‘accommodative’ language regarding hikes. Markets initially debated whether the language change was dovish or hawkish.

A more hawkish policy stance would not be wildly unexpected given the economic climate the United States finds itself in. Equities are at record levels along with unemployment. Sentiment of the typical American is also seemingly positive given the recent barrage of strong confidence reports. First with small business confidence hitting 35-year high and then with ISM manufacturing at the highest levels since 2004. Further, a leading indicator in University of Michigan’s consumer confidence report also hit an 18-year high in August. To top it all off, this week saw the Conference Board’s confidence report hit the highest point since 2000.

However, in Chairman Powell’s news conference he discussed the change. “The dropping of accommodative language does not signal a change in policy,” he said. The comment reversed any initial moves in equity and currency markets, sending the Dollar higher as equites retreated. On equities, Mr. Powell said “it’s true that some assets are at the upper end of their historical ranges.” And that “non-financial corporates have a story of leverage there.”

The comments did their part in driving equities lower as the S&P 500 shed gains from the immediate response of markets.

S&P 500 Price Chart 1-Minute, September 26th

USD Undecided After Fed Hikes Rates to 2.00%-2.25%, Powell Speech

US Dollar Basket Price Chart, 1-Minute 9/26 18:00 GMT

USD Undecided After Fed Hikes Rates to 2.00%-2.25%, Powell Speech

On the minute chart, the Dollar initially traded lower. During the news conference, the Dollar gained momentum after clarifying statements and measured remarks from Chairman Powell. On the broader scale the impact on the Dollar was fairly negligible, trading within the week’s range.

US Dollar Basket Price Chart 1 Hour, September 24th – 26th

USD Undecided After Fed Hikes Rates to 2.00%-2.25%, Powell Speech

As the dust settled, the US Dollar saw a fair amount of intraday volatility to remain near opening levels. Traders will now have to look to other important events on the economic calendar to drive price action this week. Tomorrow contains numerous important data releases for the United States, like GDP, so we could see a trend in the Dollar materialize soon despite Wednesday’s undecided Dollar.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

Other US Dollar Resources:

  1. US Dollar Tests Resistance at Prior Support Ahead of the Fed by James Stanley, Currency Strategist
  1. Weekly Technical Perspective on the Canadian Dollar (USD/CAD) by Michael Boutros, Currency Strategist
  1. USD Firms Ahead of FOMC Decision, Oil Eases on API Build - US Market Open by Justin McQueen, Analyst

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.