View Single Post
  #5 (permalink)  
Old 03-22-2007, 01:00 PM
rhodytrader's Avatar
rhodytrader rhodytrader is offline
FX-Men Honorary Member
 

Join Date: Dec 2006
Posts: 1,000
Default

Quote:
Originally Posted by ahefner33 View Post
Wouldnt the expectation of the FED to increase interest rates make the dollar strong? So this woould make a bullish market? I am not talking about making a trade right before a report, trying to make a quick profit from the deviation of the expected and realized but more of the overall trend? Sorry if I do not make any sense but I hope you can see what I am trying to say/ask.
You talked about intraday trading in your initial query. That, to me, implies news trading. If you were talking about a weeks to months projection, then you're talking fundamental analysis and trading.

As to the expectation of a Fed rate hike making the USD stronger, the answer is maybe at best. It assumes such a rate move has not already been factored in, and that other factors (such as interest rates abroad) do not offset the move in some fashion. If you really want to twist your mind in a knot, you could say that a rate hike could hamper the economy, which might be USD negative.
Reply With Quote