US dollar sustains Fed related expenses, while the ECB is likely to raise interest rates. The rate of interest was hiked by quarter of a point on Wednesday.
Dollar down after 11th rate hike this year
The dollar fell further today, one day following the Fed issued what many anticipate as its final rate rise. When investor focus switched over the Atlantic onto the ECBs upcoming decision.
The Fed hiked rates of interest by 25 bps on Wednesday, as predicted, reflecting its eleventh rate rise in the previous 12 sessions. Although Fed Chair left the prospect wide for a further raise in Sept. Markets remained as the greenback stretched its small 0.3 percent -meeting bounce
The market believes that the string of increases in rates we’ve endured is likely finished. The DXY was recently down 0.4% at 100.66.
The United States is nearing the conclusion of its rising phase over its counterparts. A subdued Fed tilt will almost certainly put a strain on the US currency in the short to medium run.
US dollar and Post FOMC Key Points
Following the FOMC, the dollar Index sheds even more territory.
The US dollar has dropped to several session’s minimums at 100.60 mark.
Next up are flash Q2 GDP, durable goods orders, and weekly claims- in spotlight.
The ECB is following in line, with markets anticipating the European Central Bank to hike rates by 25 bps – Towards the end of its rate-setting session on Thursday. With an eye on the bank’s future projections as well as targets for Sept. The euro rose 0.4 percent to $1.1128 before the announcement.
Final Thoughts and Views
Meanwhile, the US currency is expected to suffer more challenges. As a result of the Fed’s number-dependency attitude versus the background of ongoing deflation and a softening job market. In addition, suspicion of the July rise was the end of the present raising phase. It is projected to maintain the dollar’s price movement down least the moment being.
Technical Analysis
The index is currently negative 0.37 percent at 100.66. As well as facing immediate obstacle at 100.00 psychological threshold before dropping to 99.57 mark. Followed by 97.68 (a week’s bottom March 30). On the contrary, a correction of 101.64 level – Could lead the way to 102.57 (55-day SMA) following which 103.54 mark (week’s top of June 30).
