While the USD didn’t exactly rally hard, it did gain ground on the FOMC which is a bullish signal.
There are a few different trains of thought as to what is going on with the FOMC. There is currently a 95% chance priced in for the December rate hike. However, there is still doubt about the number of hikes in 2019.
With some saying one, other saying two. The reference to the strong levels of growth from the FOMC yesterday would suggest that they are quietly confident in the state of the economy and we will be looking at two.
As a result, US equities were generally higher, although the moves weren’t all that strong. The big mover on the session was oil as it has now moved into what many are calling a bear market, since its falls from the recent highs.
The USD Outlook
The DXY is trading between the resistance level at 97.00 and support at 96.20 after the latter once again held up well, despite the busy week.
After falling below 96.00 on the back of the midterms, the strength is a real positive for the USD bulls.
PPI is due to be released later today which will likely shake up the USD one way or another. A strong result will likely see us test resistance once again.