There has been a massive chaos in the global market from the very beginning of the year 2916.Most of the professional traders were cautiously waiting for the rate hike decision from the FED from the very beginning of the year 2016.The performance of the U.S economy was significantly good in the last two couple of months and this helped the FED to hike their interest rate in their last FOMC meeting minutes. The dollar started to gain its strength in the global market after the U.S presidential election which held on 8th November 2016.The dollar gained a significant amount of strength in the global market after U.S president Mr. Trump stated that the U.S government will increase the fiscal spending and they will also work with the current tax conditions of the U.S citizen.
Such an optimistic statement from the newly elected president created a strong platform for the U.S dollar and the consumer confident grew very strong based on this statement. On the last week, the dollar gained an immense strength in the market after the FED hike their interest rate and came up with a hawkish statement in the press conference. Most of the investors were pretty sure that that FED will hike their interest rate and many new traders jumped into the world of forex industry only to trade the FOMC meeting minutes. Since the dollar is significantly strong at the current moment if you want to open forex account for trading the strength of the U.S dollar then you can easily do so and become a retail forex trader in the financial world. Fundamentally the dollar holds the strong base in the forex market but it slipped lower in the last trading session after the building permits data came negative in the news release. To be precise most of the investors are now expecting strong economic news release in the market and a slight negative fundamental news release strongly pushed the dollar down against its major rivals in the forex industry.
The dollar traded significantly higher in the last week and retained its 14 years high glory in the last week. But during the last trading session, the dollar slipped lower against tits major rivals in the forex industry but it eventually overcomes its losses before the end of the trading day in the market. This clearly demonstrates that a slightest bad in the U.S economy will significantly push the green bucks lower in the market in the upcoming days. Last week the EURO break the low of 2003 due to the immense strength of the U.S dollar but eventually managed to climb up again in the market. The market closed at 1.04492 level with a little recovery at the end of the trading session but still it’s been trading at a 14 year low in the market. In the last FOMC meeting minute, the dollar strengthened in the market as the FED hike 25 basis point in their interest rate. FED chairperson Janet Yellen also said that if thing continues in such a fashion then the FED will think for three rate hikes in the year 2017 which is very unlikely. Currently, the central bank is also forcing the FED for at least two rate hikes in the year 2017 to retain the economic balance of their country. But for two consecutive rate hikes in a single year the government needs to perform tremendously in every economic sector. That means we will see lots of volatility in the forex market in the year 2017 and if you want to open forex account for taking the advantage of the volatile condition of the market then you need to have a clear overview of the forex market.
The last rate hike of the FED was the first rate hike till 2015 which means the U.S economy is currently doing well after long two years of recession. According to the U.S commerce departed the housing data is not that much stable in needs a stable growth in order to retain the positive consumer sentiment in the market. Since the dollar slipped lower in the last trading session the Great Britain pound strongly rallied and gained 0.17% in the forex market. Most of the retail traders are thinking that the dollar might weaken over the period of time if FED fails to hike their interest rate in the next year for at least for two times. There are many forex brokers in the online encouraging to open forex account to buy the deeps of the currency pair since there is strong possibility that the EURUSD and GBPUSD will form a strong bottom and starts its bullish correction in the market. However fundamentally the Great Britain pound is significantly weak in the global economy as the bank of England has kept their interest rate pretty low and it’s now 0.25% only. On the contrary, the USDCHF pair did lose its bullish momentum on the last Friday but was able to close at the higher price which clearly demonstrated the stable performance of the U.S dollar in the global economy. The USDCAD also rallied hard in the market despite stable market price in the energy sectors. After the OPEC implement, the oil production capping plan the USDCAD sharply fell in the market. But the significant amount of strength of the U.S dollar upon the rate hike helped it to recover its losses in the market and end up with a positive gain in the last week.