The week was positive for the greenback. The US dollar index managed to set new highs near $93.50.
US dollar: forecast for Sep. 25-29
The meeting of the Federal Reserve was the main event of the past week. The Fed announced that it will start reducing its $4.5-trillion balance sheet from October. At first, monthly reductions will equal to $10 billion. Over the next year, the amount will rise to $50 billion a month. What’s more important, the Fed hinted at its plans to raise rates this year – most likely in December. New forecasts show that the FOMC members are looking forward to 3 more rate hikes in 2018. The initial reaction of the market to the Fed’s hawkish comments was very bullish. However, during the rest of the week USD bulls failed to continue their advance.
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This is Forex trading plan for Thursday, May 24…
It seems like the rally of the greenback has ended. On Monday, the US dollar index tested levels near $94, however, closed below $93.50.