FXPRIMUS, Daily Analysis: FOME rise the Interest Rate but USD plummets
Fed Hikes but Forward Policy Disappoints, Dollar Plummets.
This article is originally referred from FXPrimus News.
FXPrimus has summarized the important market indicators of the day.
Today’s Important Indicators
Dollar plunged following a widely expected US rate hike as FOMC members voted for three hikes this year, and not four as previously expected by the markets.
Counter-majors surged as a result of Dollar’s weakness. Markets focus on Bank of England’s official bank rate.
Today’s Forecast for Important Trading Indicators
- EURUSD – Euro recovers recent losses as US rate hike projections disappoint markets. Euro appreciated at $1.2334 against the Dollar following FOMC despite an US rate hike as market participants did not see three rate hikes for 2017 as appropriate. Euro-Dollar closed the session 100 pips higher, recovering all recent losses from Tuesday’s session and currently trades at 1.2376.
- GBPUSD – Pound surges as Fed hike was priced in, markets’ focus on projections, not current hike. The British Pound soared a total of 150 pips in the Wednesday session after getting a boost from the US Dollar following a bad FOMC, as members signal three and not four hikes for 2018. The pair halted its gains at the 161.80 FE near 1.4128 and is currently moving higher while markets wait for the UK’s rate decision.
- USDJPY – Dollar-Yen tumbles as hawks are left with little to get enthusiastic about. Dollar-Yen fell 50 pips yesterday despite the initial spike up following the rate hike as investors were left with little to get too excited about after the FOMC Statement and Powell’s remarks on wage growth. The pair moved back below the 106.27 support while bears are pushing the market lower today.
- USOIL – Oil surges $1.80/b higher as EIA draw confirms API’s, weak Dollar supports Oil bulls. WTI rose to $65.40 per barrel in the Thursday session as EIA reported 2.6 million barrels draw. Last week EIA reported a huge build of 5 million barrels, hence, the report put hawks’ mind in rest for the time being. Analyst eye the $66.20 next.
- XAUUSD – Gold up on Powell’s statement as Fed stays put on three hikes for 2018. Gold moved $21/oz higher yesterday despite a rate hike of 25 basis points in the US rates as investor risk appetite shifted following a dovish tone from Fed Chair. The precious metal closed the session at $1332/oz as markets expect only two more hikes this year.
- US Indexes – DJ fell by 0.18%, S&P 500 followed.
- European Indexes – UK 100 declined by 0.32%, DE 30 unchanged.
- Asian Indexes – ASX 200 lost 0.16%, Hang Seng trades 0.93% lower.
- US Equities – Twitter soared 4.40% higher, Apple saw a 2.27% drop.
Original Source: FXPrimus News
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