US dollar rallies after Powell says no “need to be in a hurry to lower rates”

The US dollar is higher across the board and risk assets are struggling after a hawkish turn from the Fed Chair.

Speaking in Dallas, FOMC leader Jerome Powell hinted that rates might not be cut in December.

“The economy is not sending any signals that we need to be in a hurry to
lower rates. The strength we are currently seeing in the economy gives
us the ability to approach our decisions carefully,” he said.

The US dollar gained across the board with USD/CAD rising to a four-year high and USD/JPY rising about 25 pips to the highest since July.

The euro remains above the session lows but has fallen to 1.0516 from 1.0550 just before the speech.

The S&P 500 fell about 20 points on the headlines and is down 36 points to 5949 on the day, or 0.6%.

Fed pricing is now at 61% for a December rate cut compared to 85% yesterday.