Markets on Wednesday: Dollar Lifts Ahead of the FED
Rowan Crosby • 1 min read
The dollar managed to lift itself off the canvas, a day before we finally hear from the FOMC. The USD pushed back to the highs, as traders wait in anticipation for a rate hike in the US.
The rate hike has been on the minds of investors for months and is just about a certainty. The only thing to wait for now, is just how markets will react in response.
As a result, the majors felt some heat against the USD. The EUR/USD was notably lower, after gaining only the day before.
The DXY is now back and looking to test the highs of 90.50. An area that it has really struggled in during the recent past. That said today is a very different day than most.
We have to assume that this rate increase is virtually priced in. That means we are unlikely to see a big move higher.
What I’m interested in is if we get any guidance on what else is in store this year. If the planned three (maybe four) hikes are still on the card, that might provide some support.
US Dollar Index (DXY)- 240 min Chart.