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  Bank of England (BoE) Governor Andrew Bailey is delivering his remarks on the policy  outlook  and responding to questions from the press following the bank's decision to hike the policy rate by 50 basis points to 1.75%. Key takeaways "BOE will not comment on Conservative leadership candidates' plans." "BOE has a very clear mandate of price stability." "Consequences of Russia's actions in Ukraine have a serious economic impact." "Political pressures have been very well managed since BOE independence." "I have not abandoned the narrow path analogy for UK policy outlook." "A number of central banks have a similar narrow path to tread." About Andrew Bailey (via bankofengland.co.uk) "Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in Apr...

  DXY reverses the earlier bull run to the 106.50/55 band. The resumption of the selling bias could extend to 105.00. DXY  leaves behind Tuesday’s strong advance and sparked a corrective downside soon after hitting new 3-day peaks in the mid-106.00s on Tuesday. Tuesday’s bounce did not clear any up barrier of note and thus leaves the index vulnerable to further weakness in the very near term at least. On this, the dollar faces the tangible chance to slip back to the multi-week lows in the 105.00 region (August 2) in the short term. This initial area of contention remains propped up by the proximity of the 55-day SMA, today at 104.84. Furthermore, the broader bullish view in the dollar remains in place while above the 200-day SMA at 99.62.

   Enrico Tanuwidjaja, Economist at UOB Group, comments on the latest inflation figures in Indonesia. Key Takeaways “July’s headline  inflation  jumped to 4.9% y/y, breaching Bank Indonesia (BI)’s 4% target upper bound for the second month in a row and currently at 7-year high, while core inflation rose to 2.9% y/y, a 28-month high, from June’s 2.6%.” “Inflation in July continued to be driven by upward pressures from food services and restaurants and transport, in addition to housing, water, electricity and household fuel.” “We revised our 2022 inflation forecast now to average 4% viz. 3.3% previously and for BI to hike rates now in Sep instead of in Jul.”

  DXY accelerates the corrective decline to the 105.30 zone. Immediate to the downside appears the 55-day SMA at 104.75. DXY  navigates the fourth consecutive session with losses and revisits the 105.30 region at the beginning of the week. The index broke below the multi-session pre-FOMC consolidative theme and in doing so it has paved the way for extra decline in the short-term horizon. That said, the immediate support now turns up at the interim 55-day SMA at 104.75 ahead of the 5-month support line around 103.85. The near-term outlook for DXY remains constructive while above this 5-month support line near 104.00. In addition, the broader bullish view remains in place while above the 200-day SMA at 99.49.

  The EUR/USD is set to finish the week almost flat, gaining 0.05%. The shared currency daily chart is neutral-to-downwards, but the hourly is neutral-to-upwards. EUR/USD Price Analysis: A daily close above 1.0200 could pave the way towards 1.0300; otherwise, it might drop towards 1.0096. The EUR/USD is trading at 1.0220, after hitting a daily high at 1.0254, but later tumbled towards the daily low at 1.0145 on elevated US inflation data. In June, the Personal Consumption Expenditures (PCE) rose by 6.8% YoY, fueling expectations of additional Federal Reserve rate hikes, despite the market's pricing in only 80 bps of tightening. EUR/USD Price Analysis: Technical outlook From a daily chart perspective, the  EUR/USD remains  neutral-to-downward biased, helped by the 20-day EMA lying below the exchange rate at 1.0167. Nevertheless, the EUR/USD, unable to capitalize on an upbeat market mood, and broad US dollar weakness, keeps the shared currency exposed to further selling pre...

  "The Federal Reserve is going to have to do more with interest rates but details depend on the flow of data in coming months," Atlanta  Fed President Raphael Bostic  said on Friday, as reported by Reuters Additional takeaways "The country is not in recession, but the real question is whether current conditions are creating hardship, inflation needs to be addressed." There is still more work to be done on bringing demand and supply into balance." "Rate hikes could hurt job growth, but so far seems there is momentum for continued hiring." "Possible to control inflation while limiting the number of families who have really bad outcomes." "The US is a ways from a recession, though concerned that recession fears could become self-fulfilling." Market reaction These comments don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was down 0.25% on the day...