State of the market: The Fed maintains a rate increase strategy
Yesterday’s meeting of the US Federal Reserve didn’t contain surprises, and the US Federal Reserve retained the strategy of tightening monetary policy. So, investors expect this year two more rate hikes from the Fed, one in September and the second in late 2018 – early 2019.
The US currency reacted with restrained growth to this decision of the US Central Bank, and dollar investors sighed with relief, because, despite the criticism of Trump’s relative strong dollar, the Fed follows neutrality, following an established policy. On the other hand, the Fed is also not profitable to change its position sharply, which could undermine its credibility and it is likely that in September the market is waiting for another rate hike.
The US dollar index remains in an upward trend, limited to overbought. Also, breaking through the level of 94.60-50 opens the way to resistance levels of 94.80 and 95.00, the update of which will give a chance to resume the general upward trend of the US currency.
Read also: “Cross-rates Properties”
Hanzenko Anton
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