Majors on Thursday: The Dollar Tumbles as the FED Hikes Rates

Hi Fellas,

The result might have come in as expected, but that didn’t stop the USD from taking a beating. The FOMC hiked official interest rates to 1.5%, however, there was a hint of disappointment around the other key indicators.

Weak jobs and inflation outlook and a general lack of optimism, hurt the USD. As a result, the majors all hit their daily extremes. We saw the NZD and AUD pushing higher along with the EUR. Event the GBP was strong. My buddy Shain has a nice look at the finer details and how it might impact the EUR/USD.

As such we now need to reassess where we are at with all the majors and reevaluate our trading plan.

And there will be no rest for the EUR/USD with ECB due to come to the party with their own rate decision and press conference later today.

Forex Majors

AUD/USD – The AUD has jumped and was one of the strongest against the USD. Long-term I’m fundamentally bearish and have to look for new areas to enter. Employment data is up this morning.

EUR/USD – The Euro rallied which hurt us. However, we have the ECB who is about to throw more fuel on the fire.

USD/JPY – The Yen has fallen from around 113.50 but is slowing down at 112.50.

NZD/USD – The Kiwi bounce is now well and truly on and we need to reassess the downtrend for now.

USD/CAD – The USD/CAD actually looks strong in the face of weakness.

USD/CHF – The Swissy fell as we wait on the SNB.

GBP/USD -We bounce off the 1.3300 level, however, the Brexit talks are of most interest here.

US Dollar Index (DXY) – The USD has taken out 93.50 and we will want to wait on further price action before taking a clear short-term directional bias.

ABOUT THE AUTHOR See More

Rowan Crosby

Asia-Pacific Analyst

Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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