Forex Trading Video: EURUSD, GBPUSD Seek Deeper Trend Reversals
• The FOMC policy decision proved an effective catalyst for the dollar
• A definitive risk response to the Fed's hawkish lean is still absent, but the threat is still there
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The dollar found the spark for its inevitable breakout in the FOMC rate decision. And, with evidence for a more timely and robust rate hike regime, the greenback's move was decisively bullish. A steady Taper and shift forward in rate expectations holds clear enough implications for the dollar that EURUSD reversed sharply from channel resistance and GBPUSD is now putting pressure on its its own bullish path. Yet, in contrast, the 'risk' impact was considerably more restrained in the aftermath of the event risk. What makes the typically-lumbering dollar more responsive to the Fed? What is the outlook for speculative appetite? How are policy expectations in the Eurozone, UK and Japan shaping the FX landscape. We discuss this in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.