Mind the Dollar and … Everything Else

The FED will most certainly raise interest rates in a few minutes guys. The problem for forex traders to solve remains within the FOMC statement. If it is sort of hawkish, meaning that the FED recognizes the improvement in the US economy, then the USD rally might extend beyond the first wave. 

So, an initial wave if USD strength is quite likely. If the FOMC statement is dovish then the forex market will shift its attention to the next hike which again, might be a year away. In that case, the USD rally will be short lived according to me.

Remember that in the recent months we have seen currencies go with the rate decision, only to reverse in a few hours. A few weeks ago the RBNZ cut the interest rates but the NZD began an uptrend after a quick tumble. So, take everything with a pinch of salt guys and don't be so certain in the initial direction.