Fed member James Bullard hit the wires saying that a 25 basis points rate cut this month would be appropriate. “I would have preferred to just go ahead at the last meeting, and then we would have gotten out of this argument about whether we’re going to do 50 basis points at the meeting and we would have been able to come into the July meeting and ask if more was needed or not”.
The USD dollar index reacted positive on the news adding over 25 pips to 97. DXY tested today the 20 day moving average at 96.79 and managed to rebound piercing on the way higher and the 150 day moving average. A long position from here can target the 97.18 area and the 100 day moving average, while a break above can drive USD up to 97.44 the weekly high. A stop loss order should be placed at 97 for the conservatives while more aggressive traders can place the stop at 96.79 todays low.Don’t miss a beat! Follow us on Twitter.