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Powell talks of rate cut discussions at the Fed- USD index sinks further below support

The Fed boss is already talking and he is offering very little in the way of fresh rhetoric. Powell is leaving the door open for more Fed tightening, but the trouble is; the market does not really believe him. Of course the Fed is likely to keep the door ajar in that sense. However, the markets sniff the tea leaves and that suggests the Fed is done with tightening from now on Indeed that is pretty much what Powell has just said. Powell has further added that rate cuts are now a topic for Fed discussion. So the dollar has fallen further since my previous updates. The USD/JPY is crumbling towards 143.00 and the EUR/USD is pressing above 1.0885. All this has really hurt the USD index (USDX). That has now crumbled below its 200 day moving average, in place at 103.54. I noted here much earlier today; that a break below 103.54, or above 104.33 would deliver a move. Well, as you can see, it is the downside that has caved in, as the USD index falls below the 103 handle this evening 

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