Mary Daly, the head of the FED of San Francisco and a member of the FOMC, spoke at the question and answer session. Her comments indicate that there are no signs to stop interest rate increases. Inflation is at the target, and the level of full employment has been exceeded in the labor market. The economic growth is also strong.
Asked about the situation on the market, Daly said that the current downward correction does not have to be a negative thing and you should not worry about it hastily. In her opinion, there is rarely one reason why such movements occur.
Coming back to the economy, one of the driving forces behind the current dynamic growth is fiscal policy and financial conditions. An independent central bank is essential for maintaining a healthy economy. These last words are probably a reaction to the words of Trump, who said very little that currently, the biggest threat to his policy is the Federal Reserve. It looks like the US president has found a scapegoat in the event of a country crash.
Let's now take a look at the US Dollar Index technical picture at the H4 time frame. The market has made a local low at the level of 94.79, just above the 61% Fibo retracement of the previous swing up. When the low was made, the price bounced and now is its way towards the level of 95.38, which is the nearest technical resistance. The larger time frame trend remains up, so the market might again try to resume the rally soon.
