Fed's Collins backs a slowdown on rate hikes, but is data dependent
The New York Times reported that the Boston Federal Reserve's Susan Collins backs a slowdown in rate increases.
Collins was reported saying that she was leaning toward a quarter-point move at the central bank’s February 1 meeting.
"I think 25 or 50 would be reasonable; I'd lean at this stage to 25, but it's very data-dependent," Collins said in an interview with The New York Times.
US Dollar update
Forex is treading water ahead of the US consumer Price Index event on Thursday. The risks there are balances to a blow-off in markets if the data come sin hotter than expected which would likely fuel a rally int he greenback. However, markets are expecting the headline CPI inflation to register a slight decline in December as energy prices offered large relief again.
As for the DXY daily chart, an M-formation is in play:
The M-formation is a reversion pattern and the price would be expected to move in for the restest of the resistance structures and neckline of the pattern between 103.50 and 104.00. Such a move would align with a 38.2% Fibonacci retracement and a 50% mean reversion at the extreme.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
