USD trades lower across the board, following the Fed rates decision yesterday when they hiked for 57bp as expected. They did not want to go for 100% since they can be afraid of a recession. Powell mentioned that they will be closely monitoring the economic data before making any further decisions regarding rates. So if we consider that the USD is turning down and stocks are higher, it appears that the market believes that data will be bad in the upcoming weeks, which is already visible in different sectors. However, Fed members see this as a temporary contraction only, even if today's GDP figures (12.30GMT) will be bad. A technical recession is defined as two consecutive quarters of GDP contraction. However, the US does not use this definition and instead relies on a determination by a group of researchers at the National Bureau of Economic Research, based on a broader range of factors.

From an Elliott wave perspective, we see DXY coming down into the third leg of decline that can even accelerate if 10-year US notes break out of a current intraday range; yellow square.

For a more detailed analysis, you can also check our video in which we covered some other markets as well.

Video Length: 00:22:01

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