How does the Fed rate affect USD pairs? | Forex Factory

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How does the Fed rate affect USD pairs?

  • #1
  • First Post: Jun 8, 2017 11:03am Jun 8, 2017 11:03am
Sure I've heard somewhere that the FED rate is expected to rise a couple of times this year.But what does it do to say EUR/USD if infact the rate hike happens? Sure it's a simple question for the more experienced traders but it always confused me.Does it mean the USD weakens???
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  • #2
  • Jun 8, 2017 3:57pm Jun 8, 2017 3:57pm
Quoting paulw
Sure I've heard somewhere that the FED rate is expected to rise a couple of times this year.But what does it do to say EUR/USD if infact the rate hike happens? Sure it's a simple question for the more experienced traders but it always confused me.Does it mean the USD weakens???
Technically 1.1290 is psychological resistance. Euro expected to go lower side this week , however only 1 day left. Whatever rate is..if hike Euro will go 1.1100 and lower , even unchanged will drive it lower after trying to kiss 1.1500

Stay short on higher side and hold patience.
Never Gamble Forex
  • #3
  • Jun 8, 2017 5:35pm Jun 8, 2017 5:35pm
So basically,a rate hike strengthens a currency initially??? If so,then I assume this also applies when GBP or EUR increase their interest rates.Although I have heard today that maybe EURO ECB has no plans to increase it anytime soon........and haven't ruled out further cuts either.
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  • #4
  • Last Post: Jun 8, 2017 9:44pm Jun 8, 2017 9:44pm
Quoting paulw
So basically,a rate hike strengthens a currency initially??? If so,then I assume this also applies when GBP or EUR increase their interest rates.Although I have heard today that maybe EURO ECB has no plans to increase it anytime soon........and haven't ruled out further cuts either.
Not only initially. It has prolonged effects. You just seen Euro testing fresh low 1.1179

Avoid reading multiple news on same. News trading is purely gamble , technically Euro doesn't have strong upside. Most of so called sites always panic you , stay focused on chart , market makers always test and shaken your emotions in trading.
Never Gamble Forex
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