With the Fed Reserve expected to hike rates by 75bps tonight, the common question is "what would happen to the DXY". Typically, because the Fed Reserve communicates the expected hike, this leads to a priced-in scenario.
The previous 4 rate hikes...
16 March, 25bps hike as expected.
4th May, 50bps hike as expected.
15th June, 75bps hike (expected 50bps).
27th July, 75bps hike as expected.
Generally, the price trades lower following the release of the news, only to trade higher again several days after.
Could this be the case again for the upcoming releases?
Maybe the DXY could retest the support level of 109 before trading higher again towards the 112.50 resistance level.
The previous 4 rate hikes...
16 March, 25bps hike as expected.
4th May, 50bps hike as expected.
15th June, 75bps hike (expected 50bps).
27th July, 75bps hike as expected.
Generally, the price trades lower following the release of the news, only to trade higher again several days after.
Could this be the case again for the upcoming releases?
Maybe the DXY could retest the support level of 109 before trading higher again towards the 112.50 resistance level.