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

The DXY got hit after the FED raised rates.

AUD is up

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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