The US dollar recovered against the other major currencies today, after the Federal Reserve tempered expectations for higher U.S. interest rates yesterday , which led to a sell -off in the US dollar !!!
In a statement issued after the monetary policy meeting , the Fed lowered its forecast for growth and inflation and lower interest rate expectations.
The Fed also hinted at the possibility of changing the interest rates in the near future ,But it did not mention the time or get confirms……….
Fed Chair Janet Yellen also warned that the stronger dollar was acting as a drag on U.S. exports and was pushing down inflation.
What is that supposed to mean ???!!!
I think the strong US dollar may cause a little hurt for US economy ,so.. the US government wants to slow down a little bit , as a result ; the US dollar is likely to consolidate for a while before resuming its upward trend …
USD-INDEX : As long as 95.39 support holds on a daily closing basis , outlook in US dollar index remains – strongly – on upside , resistance comes at the 100.09 levels , sustained breakout above this level will restore the upside momentum and open the 105.00 levels …..
Conclusion : the US dollar index is likely to consolidate within 95.00/100.00 range before the next breakout …