Show some respect to the FED

Markets are going up after FED’s meeting yesterday

The US Dollar weakened on Wednesday evening March 16 and is expected to continue this path a couple of days more as the FED announce yesterday it will continue its dot plot plan but with fewer rates hike. The number of rates hike expected to happen during 2016 drop in half to 2 only.

Follow yesterday announcement, Wall street jump to its highest levels this year. It didn’t stop there, also Europe and Asia shares show up-movement since yesterday.

Positive momentum didn’t stop with equity markets, crude oil jumped as well and is now at $39, its highest level this year.

The biggest winner from the FED announcement was the currency market as the Dollar sank the most against the EUR and JPY. Currently the US Dollar sank to one month and 3-week low versus the two.

Since beginning of the year, world markets drop over China’s poor economic reports. The Fed in his remarks yesterday address this global risk when explaining why this sudden decision to have fewer rates hike. The Fed shifted position as global risk is facing the US.

Is it the end of the strong Dollar?

TraderNovo analysis team doesn’t think. There are still rates hike expected on June and July this year, which could send the Dollar to another up movement.