Federal Reserve Chairman Jerome Powell told Congress on Tuesday that the Fed is expected to raise interest rates multiple times in the coming months and will be prepared to re accelerate the pace of monetary policy tightening if necessary. The speech, like the previous hints of several other board members, provided market communication for the next 50 point rate hike by the Federal Reserve.

If the Federal Reserve really raises interest rates by 50 points, it means that the last 25 point hike was wrong. If we accelerate the rate hike this time, the market will question the pace of the Federal Reserve's rate hike, and it is uncertain whether it will increase by 75 points next time, which will have the opportunity to destabilize the financial system. Another issue is that the United States has stopped issuing bonds due to the debt ceiling, but when it starts issuing bonds again, there are two possibilities: firstly, due to an increase in supply, bond interest rates will rise. Secondly, due to strong demand, the impact is minimal. But if it were the former, it would bring further upward pressure on the interest rate. Push up the US dollar.

The rebound in the US dollar has led to a decline in the pound, which is currently testing its neckline. If the pound can successfully break the neckline, the double top measurement will have an opportunity to try 1.12-1.14. BY DUKASCOPY BANK SA