Market Analysis – How “FOMC’s Rate Hike” impacted the market today

December 16, 2016

High Volatility after the Rate Hike Decision by FOMC mixed the market.

Market Analysis – How “FOMC’s Rate Hike” impacted the market today

This article is originally referred from Traders Trust - Daily Morning Report

The dollar slipped lower against other major currencies on Today, as investors locked in profits from the greenback’s rally to fresh 14-year highs following the Federal Reserve’s decision to raise interest rates for the first time since December 2015.

EUR/USD gained 0.29% to 1.0444, off the previous session’s 14-year low of 1.0363.

The greenback found broad support after the Fed concluded its policy meeting on Wednesday by raising interest rates by 25 basis points and projected three more rate hikes for 2017.

The dollar was also boosted after the U.S. Labor Department reported on Yesterday that initial jobless claims fell to 254,000 last week.

A separate report showed that the U.S. consumer price index rose 0.2% last month, in line with expectations. Year-on-year, consumer prices increased by 1.7%.

In addition, the Philly Fed manufacturing index climbed to a two-year high of 21.5 this month from 7.6 in November, blowing past expectations for a reading of 9.0.

GBP/USD added 0.15% to trade at 1.2433, after falling to a three-week trough of 1.2372 on Yesterday.

The pound’s losses were capped by the Bank of England’s decision to keep interest rates at a record low of 0.25% and the bank’s bond-buying program target at £435 billion.

Original Source: Traders Trust - Daily Morning Report

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