The historic Fed hike sent EUR/USD one leg lower after the previous falls, but the pair continued with a move higher before finding some kind of balance slightly lower but the moves are not extreme, especially in light of such an important change. What’s going on? What’s next? Here’s why there is potential to the downside. A hike is a hike: a higher interest rate, despite being priced in, goes against the policy in Europe: a recent cut in rates. And it wasn’t too dovish: the Fed didn’t change the “dot plot” – in theory we could still see 4 rate hikes in 2016, higher than the markets had expected. Markets had expected ... (full story)