Another Fed member, another hawkish message
The dollar has been lifted on Dudley pretty much echoing Yellen last week
Further comments focused on inflation measures;
- Fed doesn't put much weight to market based CPI measures
- Says Fed doesn't know if market based gauges are signalling lower expectations or if investors are changing their risk protection ideas
- Thinks inflation expectations are pretty stable
- It's inappropriate to follow a mechanical rule
Reader YAR makes a great point on the comments. If it wasn't a good idea to raise rates at the Sep FOMC, how are many of the FOMC now suddenly sure that the next few months will be perfect?
USDJPY ran up to 120.33 before running out of steam. That looks mild resistance ahead of stronger looking stuff at 120.40/45. 120.60/65 is the level that held late Friday/early Monday and is an old resistance point
USDJPY 15m chart
The main support is still at 120.00
