{"id":31219,"date":"2025-09-24T03:21:45","date_gmt":"2025-09-24T03:21:45","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=31219"},"modified":"2025-09-24T03:21:45","modified_gmt":"2025-09-24T03:21:45","slug":"dollar-finds-support-after-powells-comments","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/sv-eu\/analysis\/dollar-finds-support-after-powells-comments\/","title":{"rendered":"Dollar Finds Support After Powell\u2019s Comments"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/sv\/wp-content\/uploads\/sites\/10\/2025\/02\/usd1-1024x559.png\" alt=\"\" class=\"wp-image-16968\" srcset=\"https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/02\/usd1-1024x559.png 1024w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/02\/usd1-300x164.png 300w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/02\/usd1-768x419.png 768w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/02\/usd1.png 1408w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USDX rose to 97.3 after Fed Chair Powell downplayed near-term rate cuts.<\/li>\n\n\n\n<li>Fed Governor Miran warned of tightening risks if bold policy shifts are delayed.<\/li>\n\n\n\n<li>Traders await the PCE index for fresh inflation signals.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The US Dollar Index (USDX) edged up to 97.3 on Wednesday, snapping a two-day losing streak as Federal Reserve Chair Jerome Powell struck a notably cautious tone on future monetary easing. After testing lows near 95.8 earlier in the week, the dollar found fresh footing on the back of central bank messaging that tempered dovish expectations.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">&quot;The US economy is showing resilience in the midst of substantial changes in trade, in immigration policies, as well as in fiscal, regulatory, and geopolitical arenas,&quot; Fed Chair Powell says. <br><br>&quot;It has become clear that the balance of risks has shifted,&quot; he later added. <a href=\"https:\/\/t.co\/k4ZwxUSfQC\">pic.twitter.com\/k4ZwxUSfQC<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1970532615355547879?ref_src=twsrc%5Etfw\">September 23, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Powell reiterated that the path of rate cuts remains uncertain, given the ongoing tension between sticky inflation and softening labour market indicators. While he acknowledged that <a href=\"https:\/\/t.co\/oB2FJ52u29\" target=\"_blank\" rel=\"noopener\" title=\"\">price pressures related to tariffs have remained subdued<\/a>, he stopped short of committing to any aggressive easing path, keeping markets in a holding pattern.<\/p>\n\n\n\n<p>His stance was both echoed and challenged by newly appointed <a href=\"https:\/\/t.co\/tEkcVpkYrd\" target=\"_blank\" rel=\"noopener\" title=\"\">Fed Governor Stephen Miran<\/a>, who advocated for a 50bps rate cut at last week\u2019s meeting.<\/p>\n\n\n\n<p>Miran cautioned that without bolder monetary action, the Fed may risk underestimating the degree of tightening already present in the economy, potentially leading to job losses.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Miran argues Fed rates pose risks to employment, should be roughly 2 points lower <a href=\"https:\/\/t.co\/95zUvzxStu\">https:\/\/t.co\/95zUvzxStu<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1970165699822645621?ref_src=twsrc%5Etfw\">September 22, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>With rate expectations finely balanced, trader focus now shifts to the upcoming <strong><a href=\"https:\/\/www.bea.gov\/data\/personal-consumption-expenditures-price-index\" target=\"_blank\" rel=\"noopener\" title=\"\">PCE price index<\/a><\/strong>, the Fed\u2019s preferred measure of inflation. A hotter-than-expected read could reinforce the Fed\u2019s hesitancy to cut, while a cooler figure may revive dovish bets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The <strong>US Dollar Index (USDX)<\/strong> is trading at <strong>96.94<\/strong>, up <strong>0.14%<\/strong> on the day, exhibiting a mild rebound after its recent decline. The broader trend remains bearish, with the index down from highs of <strong>107.53<\/strong> in March to test the <strong>95.97<\/strong> support zone earlier this month.<\/p>\n\n\n\n<p>The moving averages (5, 10, 30) remain aligned to the downside, reflecting sustained selling pressure. The MACD histogram is close to the zero line but still weak, suggesting momentum is muted and buyers are not yet fully committed.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"453\" src=\"https:\/\/www.vtmarkets.com\/sv\/wp-content\/uploads\/sites\/10\/2025\/09\/image-25-1024x453.jpeg\" alt=\"\" class=\"wp-image-31220\" srcset=\"https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/09\/image-25-1024x453.jpeg 1024w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/09\/image-25-300x133.jpeg 300w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/09\/image-25-768x340.jpeg 768w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/09\/image-25.jpeg 1080w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Unless the index can reclaim the <strong>98.50<\/strong> region, the bias stays tilted to the downside.<\/p>\n\n\n\n<p>Support lies first at <strong>95.97<\/strong>, with further downside risk toward the <strong>95.00<\/strong> handle if sellers regain control. On the upside, resistance is seen at <strong>98.50<\/strong>, followed by a stronger ceiling around <strong>100.00<\/strong>.<\/p>\n\n\n\n<p>Overall, the dollar index is struggling to build recovery momentum. For now, it appears locked in a weak consolidation, with downside risks outweighing bullish potential unless a clear breakout above resistance occurs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>The dollar\u2019s short-term trajectory hinges on macroeconomic data and evolving Fed communication. For now, Powell\u2019s reluctance to commit to aggressive easing may limit downside pressure, especially if upcoming PCE data support the <a href=\"https:\/\/t.co\/wM0ThERzDI\" target=\"_blank\" rel=\"noopener\" title=\"\">Fed\u2019s patient stance<\/a>.<\/p>\n\n\n\n<p>However, without a strong inflation beat or employment rebound, the dollar may struggle to regain bullish momentum.<\/p>\n\n\n\n<p>The medium-term outlook remains cautious, with likely range-bound trading between <strong>95.8 and 98.0<\/strong>, unless a surprise macro trigger breaks the gridlock.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*d96fp5*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTczOTYxNzckbzgzJGcwJHQxNzU3Mzk2MTc3JGo2MCRsMCRoMA..*_ga_6XQ8153GYW*czE3NTczODczODQkbzE4MyRnMCR0MTc1NzM4NzM4NCRqNjAkbDAkaDA.*_ga_BG6LYEHPX1*czE3NTczODczODQkbzEzMSRnMCR0MTc1NzM4NzM4NCRqNjAkbDAkaDA.*_ga_7CG6454YR5*czE3NTczODczODQkbzEzMSRnMCR0MTc1NzM4NzM4NCRqNjAkbDAkaDA.*_ga_J8BRGZSREX*czE3NTczODczODUkbzEzMSRnMCR0MTc1NzM4NzM4NSRqNjAkbDAkaDA.*_ga_69Z54R4H9N*czE3NTczODczODYkbzEzMSRnMCR0MTc1NzM4NzM4NiRqNjAkbDAkaDA.*_ga_CY2VCKFC3C*czE3NTczODczODYkbzEzMSRnMCR0MTc1NzM4NzM4NiRqNjAkbDAkaDA.*_ga_TXZ07R2C21*czE3NTczODczODYkbzEzMSRnMCR0MTc1NzM4NzM4NiRqNjAkbDAkaDA.*_ga_17TMGY9BBE*czE3NTczODczODgkbzEzMCRnMCR0MTc1NzM4NzM4OCRqNjAkbDAkaDA.*_ga_2QCC3S2748*czE3NTczODczODgkbzEyOSRnMCR0MTc1NzM4NzM4OCRqNjAkbDAkaDA.*_ga_MWDVVSEVL5*czE3NTczODczODgkbzEyOSRnMCR0MTc1NzM4NzM4OCRqNjAkbDAkaDA.*_ga_EJCVQDC7VT*czE3NTczODczODkkbzEyNSRnMCR0MTc1NzM4NzM4OSRqNjAkbDAkaDA.*_ga_XJ4037XKK6*czE3NTczODczOTEkbzEyNCRnMCR0MTc1NzM4NzM5MSRqNjAkbDAkaDA.*_ga_E7D2PCX624*czE3NTczODczOTEkbzEyMyRnMCR0MTc1NzM4NzM5MSRqNjAkbDAkaDA.\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The greenback staged a rebound after Fed Chair Powell\u2019s cautious remarks quelled aggressive rate-cut bets, pushing the USDX back above 97. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":5,"featured_media":16968,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[7,8],"class_list":["post-31219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar","tag-indices"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/31219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/comments?post=31219"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/31219\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media\/16968"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media?parent=31219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/categories?post=31219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/tags?post=31219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}