Financial Markets heading today toward important event that roughly most economist await which is Fed Rate decision and the Fed’s Rate path for 2017.
The graph below showing dollar Index at higher levels of 2016 along with the highest expectation for Fed Rate hike this meeting.
Most economist expecting Fed to head for 0.25 point rate increase while this scenario got one glitch which is the new U.S president Mr. Donald Trump prospective for the monetary policy.
Mr. Donald announced that his intention is lower Interest Rate, while he is preparing around 1 trillion dollar for infrastructure spending.
If Fed go with this Rate Hike this will be already discount at market movement which may trigger some up and down fast movement due to high liquidity .
What if Fed sustain hold on Rate, at this case we may face some huge drop for U.S Dollar
Technical Analysis View:
The coming Short-Run to Mid-Run view showing ability for U.S Dollar to hold the current trading zone for this year 2016, as we see over the chart, Dollar may or may not head to test 103.50-80 before a drop correction may hit the market toward (92.50-94.00) zone.
From another hand, Fed decision today and the path of 2017 interest rate may hit market with this drop correction as market satisfied with 102.10 last month high.
Above (103.80) the market continues rising may be questionable