Mind the Dollar and … Everything Else - Forex News by FX Leaders

Mind the Dollar and … Everything Else

Posted Wednesday, December 14, 2016 by
Skerdian Meta • 1 min read

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.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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